Aviva Investors, the global asset management division of Aviva plc, has announced a significant investment of €33 million to support the development of two purpose-built student accommodation (PBSA) schemes located in Valencia, Spain. These projects are a collaborative effort between Amro Partners and Invesco, and are expected to deliver a total of 342 student beds upon completion.
The Financing Details
This financing is particularly noteworthy as it aligns with the Loan Market Association’s (LMA) Green Loan Principles, emphasising Aviva Investors’ commitment to environmentally conscious development. This marks the second investment by Aviva in the student accommodation sector, following a previous green financing initiative for a 283-unit PBSA scheme situated in Elephant & Castle, London.
Project Specifications
The two Valencia schemes aim to achieve BREEAM ‘Outstanding’ certification and an EPC ‘A’ rating, in addition to a 3-Star Fitwel Standard, which assesses how buildings contribute to health and well-being. Designed to cater to a diverse student population, the amenities will encompass dedicated study spaces, a gym, a cinema, and food and beverage facilities. Furthermore, all accommodation options will be available as accommodation only, half-board, or full board, allowing flexibility for students with varying budgets.
Market Context and Demand
Valencia has established itself as a robust market for both international and domestic students, bolstered by the presence of two of Spain’s leading universities. Despite this strong demand, the city has encountered ongoing challenges regarding the availability of student accommodation. Sima Kotecha, Head of High Yield Strategies, Real Estate Debt at Aviva Investors, expressed satisfaction with this expansion, stating, “We are therefore very pleased to expand our relationship with Amro and Invesco to fund this scheme, helping the continued delivery of new student living quarters in a strategically important market, where we believe its dynamics support long-term investment outcomes.” The schemes are strategically located in the Benicalap district, north of the city centre, ensuring easy access to local transport networks and a short commute to both the University of Valencia and the Polytechnic University of Valencia campuses.
Construction Timeline
Construction is already underway, with expectations set for completion before the start of the 2028/2029 academic year. This joint venture also encompasses other developments in prominent Spanish cities including Madrid, Barcelona, Bilbao, and Málaga. Pablo Garcia-Morales Osorio, Managing Director and Co-Head of Iberia at Amro Partners, remarked on the significance of this financing, stating, “We are delighted to complete our first development financing with Aviva Investors which builds on the successful joint venture partnership undertaken in Germany in 2025. We look forward to growing our relationship further in the coming years.” The combined portfolio from this partnership includes approximately 1,500 PBSA beds that are projected to be completed and operational by 2027 and 2028.