Hines, the global real estate investment, development, and management firm, has acquired a flexible accommodation complex with a hotel license in the city of Valencia through the Hines European Real Estate Partners III fund (HEREP III). The project will comprise 650 beds, which will be part of the firm’s growing residential portfolio in Spain.

ATDI, the real estate and logistics asset investment and management platform of the Atitlan business group, will play a key role as the lead developer in the development of the turnkey project. In addition to this transaction, ATDI has more than 1,500 flexible accommodation units under development, having recently delivered its first complex with 300 units.

This investment, advised by Garrigues, JLL, EY, and Arcadis, will allow Hines to strengthen its asset portfolio in Spain and expand its presence in the living space beyond Madrid and Barcelona. Following the acquisition, construction has already begun on the first phase, and completion is expected in 2027. The student accommodation platform Aparto (a Hines subsidiary) will assume management of the new center in Valencia.

Paul White, Senior Managing Director and Fund Manager of HEREP III, highlights: “Since the launch of HEREP III, building student housing has been one of our highest-conviction strategies, and we have had the ambition to create one of Europe’s leading PBSA portfolios. We are therefore delighted to have taken this latest acquisition in Valencia off the market, continuing the successful execution of this strategy. Creating new student accommodation in the most undersupplied markets and utilizing Aparto’s expertise to manage them on behalf of our investors encapsulates the very best of Hines as an investor, developer, and manager of prime European real estate”.

Vanessa Gelado, Senior Managing Director and Country Head of Hines in Spain, notes: “Our expansion in Valencia reinforces our commitment to the living segment in Spain. The city, with its growing demand for quality accommodation and international appeal, has become a key market for our investments. This project not only responds to the significant need for modern, tailored offerings, but also positions Hines at the forefront of a sector with significant growth potential in one of the country’s leading university cities”.

Agustín Pérez, CEO of Atitlan Desarrollos Inmobiliarios, emphasizes:
“We are very proud of this project. It will have a great impact on the area surrounding the Polytechnic University, which until now had been degraded and abandoned for many years. Thanks to the collaboration of a top-tier operator, we are confident that this project will significantly contribute to revitalizing this area of ​​Valencia.
We also believe it will help alleviate the lack of residential supply in the Cabañal area, as part of the tourist and student demand this complex will attract is currently occupied by residential units. We hope that projects like this will contribute to reducing the existing housing problem in the city, where we are committed to generating impactful proposals that benefit the entire community”.

Strategic location and high quality standards
The facility will offer flexible accommodation for various lengths of stay and has been designed to meet the needs of a wide range of clients, including students and professionals of all kinds, thanks to its strategic location and exceptional surroundings. The center will also provide comfortable accommodation for the families of patients admitted to Malvarrosa Hospital, located nearby.

The complex is located near the Polytechnic University of Valencia campus and the University of Valencia, two of the most important universities in the country, which together host nearly 70,000 students per academic year. Furthermore, its proximity to La Patacona beach, along with easy access and excellent public transport connections, makes it a prime asset for tourists and visitors during the summer.

With over 19,000 square meters of built area, the complex is expected to feature a wide variety of services and amenities designed to meet the needs of its diverse tenants (including study areas, a gym, coworking, a cafeteria, meeting rooms, a cinema, laundry facilities, parking spaces, and an outdoor pool).

The variety of room types is intended to meet the needs of all types of residents, with single, double, triple, and apartment-style rooms planned for development. The project will be carried out in compliance with Hines’ rigorous sustainability standards, with the goal of achieving net-zero emissions operations. Furthermore, the project aims to achieve BREEAM Excellent and WELL Gold certifications, thus ensuring a healthy environment conducive to the well-being of its occupants.

Growth of Aparto in Spain
The complex will be operated by Aparto, Hines’ student residence operating platform, which manages two student residences in Barcelona: Aparto Pallars, opened in September 2022, and Aparto Cristóbal de Moura, which opened in January 2024, totaling nearly 1,100 student beds. This portfolio will be expanded with an additional 530 beds through a hotel-licensed project under development in Porta Diagonal, scheduled for completion in early 2026.

Meanwhile, the project in Valencia will add another 650 units, reaching more than 2,200 beds and positioning Hines as a significant player in the Spanish living market.

Attractiveness of the student accommodation market in Valencia
Valencia is Spain’s third-largest city in terms of population, GDP, and student population, with nearly 110,000 students. The number of students in the city has grown by an average of 2.3% annually in recent years. It is also the city with the second highest percentage of international students (14%), with an annual growth rate of 5.8%.

Valencia has a consolidated student residence market, with major institutional players present for years, although a large portion of the supply (around a third) is made up of old and obsolete residences that no longer meet current demand. Furthermore, Valencia’s current supply rate is significantly low (4.3%), below that of Barcelona and Madrid. Despite the planned addition of 2,400 new beds in the coming years, the Valencia student residence market is expected to continue to experience a shortage of supply and quality, adapted to current needs.

Hines
Hines is a leading global real estate investment manager. We own and manage €86.9 billion¹ in assets across all property types on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 31 countries build on our 67-year history to move the world forward by investing in, developing, and managing some of the world’s finest real estate. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of June 30, 2024.

Hines European Real Estate Partners III (HEREP III)
is a Luxembourg-based, euro-denominated, closed-end investment fund managed by Hines. Final closing took place in November 2023, raising over €1.6 billion of capital, ahead of the fund’s target of €1.5 billion. HEREP III’s objective is to acquire a diversified portfolio of premium commercial and residential real estate investments across major European markets on behalf of institutional investors. The Fund features broad flexibility across sectors, with a strong portfolio focus on deploying thematic investment themes in the logistics, housing, office, and retail sectors, as well as creating value through active interventions leveraging Hines’ deep, vertically integrated platform and market-leading ESG credentials. The fund was renamed from Hines European Value Fund (HEVF) to Hines European Real Estate Partners (HEREP). HEREP III follows its predecessors HEVF 1 (2018) and HEVF 2 (2021) in the continuation of Hines’ flagship HEREP series in Europe.

Atitlan Desarrollos Inmobiliarios (ATDI)

ATDI is the real estate and logistics asset management and investment platform of the Atitlan business group. Currently, the platform is positioned as one of the most active groups in the Iberian Peninsula, focusing on four lines of business: real estate development, tertiary, industrial, and residential real estate development, asset management, and management of other real estate and logistics assets.
ATDI defines itself as a manager of real estate solutions to complex problems that enable a positive impact on the environment and all its stakeholders.
Since its first project in 2010, it has invested more than €1.5 billion and executed more than 150 projects. It currently has more than 450 properties under management.