Amro Partners bolsters Iberian presence with double buy

Build-to-rent specialist Amro Partners has acquired two student schemes in Spain and Portugal, lifting the value of its Iberian portfolio by a third to €200m (£170m). Amro has purchased sites for a €32m development in Madrid (pictured above, right) and a €17m project in Porto (above, left), together providing 367 student beds in the region and taking its total to 2,000. The developer will build 216 student beds in Getafe, south Madrid, close to the Universidad Carlos III de Madrid (UC3M). In Portugal, its first deal in the country will see it develop a 151-bedroom scheme in the Paranhos area of Porto, located within the city’s main university hub around the Polo II University Campus. Both properties will open in summer 2023 and will be operated under the Amro Estudiantes brand. The developer is on target to achieve a portfolio of 5,000 student beds by 2025 and expects to use the regional platform as a launch pad for other ventures in continental Europe. Co-founder and managing director Raj Kotecha told EG that Amro was attracted by the relatively undeveloped nature of the Iberian market and the amount of dated stock. “Iberia is definitely a market which has scale. It has geographical diversity – if you look at the investment-grade cities, there is a list of 10 or 12,” he said. Amro is also pursuing BTR opportunities in Iberia, following its UK strategy. Investments in Spain and Portugal should allow Amro to follow a similar trajectory to its UK business, Kotecha said. “When we did our first deal in 2018, the market looked like the UK market 15 years earlier. But it was clear it wasn’t going to take 15 years to go through what the UK went through.” He added: “The UK is providing a template for growth, rather like the US market did for the UK.” Deepest market Amro Partners has two BTR schemes in the UK – The Green Rooms in Manchester and The Wiltern in Ealing, west London. The latter attracted Pension Insurance Corporation to strike a £90m forward funding deal earlier this year. “We see London as the deepest market, but we are selectively looking at opportunities outside London as well,” said Kotecha. Amro is also bringing forward its first co-living scheme in the UK, with plans for a 202-bedroom scheme in Kingston lodged last week. The Rex will see the refurbishment of Greencoat House on Clarence Street, opposite the station. “Because it is a retention and an enlargement, it allows us to deliver good sustainability credentials, because of the embodied carbon reuse,” he added. “That element of our strategy is key through the business, across both Iberia and the UK.” The Rex will comprise 44,185 sq ft of co-living space and 11,600 sq ft of shared amenities, including a residents’ lounge, communal kitchens and dining spaces, a wellness centre and co-working spaces. [caption id="attachment_1098359" align="aligncenter" width="847"] Amro Partners’ The Rex co-living scheme in Kingston, London[/caption] Pan-European capital Amro aims to triple its portfolio to £1bn by 2030, growing BTR to 1,500 homes with a GDV in excess of £500m, with the balance made up of student and co-living. The strategy is pan-European, which Kotecha says reflects investor allocations. “Institutional capital is pan-European in its mindset. You are seeing that across student and multifamily, and to some extent co-living, although it is more niche,” he said. In Spain, Amro has agreed two BTR sales to Xior Student Housing, a Belgium-based REIT that has expanded across the continent. “You are seeing the same names and same institutions deploy across various European geographies,” said Kotecha. But he added that the differences in each market mean the operational focus is important. “Each European geography has its own nuances and peculiarities. Ultimately, these are operational real estate assets, and they are impacted by country-specific regulations and differentials.” That could be as varied as a demand for canteens in Spain to the planning quirks of co-living in London. Kotecha’s solution is to build up a hub-and-spoke network, to overcome those challenges. “We like to develop scale in the markets we are in, rather than spreading ourselves too thinly,” he added. “We certainly feel we have got more work to do to consolidate our position in Iberia before we make that next step.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Photos © Amro Partners