M&A Activity • Jul 12, 2021
M&A Activity
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Antwerp, Belgium – 12 July 2021 – Embargo until 07h00 (CET)
Regulated Information Insider Information
Xior Student Housing N.V. ("Xior"), a Belgian real estate investment trust (BE-REIT) specialized in student housing in Belgium, the Netherlands, Spain and Portugal, is announcing the launch of a voluntary public tender offer to acquire a controlling stake in the Spanish student housing company Student Properties Spain SOCIMI, S.A. ("SPS").
SPS is a real estate investment vehicle focused on investing in student housing structured under the SOCIMI regime and is listed on Spain's BME Growth market. SPS currently owns a portfolio consisting of three state-of-the-art residences situated at prime locations in Madrid, Malaga and Seville, the latter to be delivered in Q3 2021. All three are among the most popular student cities in Spain. Together these residences represent more than 725 beds and are operated under the HUBR brand. This portfolio represents a one of a kind opportunity in the current PBSA market, with unparalleled locations in the most relevant student cities in Spain.
Christian Teunissen, CEO of Xior: "Since our entry in the Spanish market in March 2019, Xior's portfolio has continued to grow with residences of the highest quality, as we are always looking for the right opportunities in this interesting and thriving market. Securing this transaction would catapult Xior into a leading position in the Spanish market: not only will it bring us three of the best located student residences in Spain, it will also add a fifth city to our Spanish portfolio, adding scale to our organisation and building an even stronger foundation to continue our expansion in our second home market."
Antwerp, Belgium – 12 July 2021 – Embargo until 07h00 (CET)
Regulated Information Insider Information
Following the previous announcement on 5 July 2021, in which Xior and SPS jointly confirmed their exclusive negotiations, today Xior announces the launch of a voluntary public tender offer to acquire a controlling stake in the Spanish student housing company Student Properties Spain SOCIMI, S.A..
SPS is a real estate investment vehicle focused on investing in student housing structured under the special tax regime of the "Sociedades Anónimas Cotizadas de Inversión en el Mercado Inmobiliario" (SOCIMI) and is listed on Spain's BME Growth market. SPS currently owns a portfolio consisting of three state-of-the-art residences situated at prime locations in Madrid, Malaga and Seville, the latter to be delivered in Q3 2021. All three are among the most popular student cities in Spain. Together these residences count approx. 725 beds and are operated under the HUBR brand. This portfolio represents a one of a kind opportunity in the current PBSA market, with unparalleled locations in the most relevant student cities in Spain. The total investment value of this portfolio, including the brand and operating platform HUBR amounts to approx. 88 MEUR, with expected gross yields of approx. 7%. As part of the transaction, net operating income guarantees were agreed upon with the sellers for the residences in Malaga and Seville, for periods of respectively 12 months and 24 months starting on the date of closing. Additionally, all three residences meet sustainability criteria, and have been given an A energy label. For more information on SPS, see their website.
Xior will continue to operate these three assets under the HUBR brand for now, after which the brand will be integrated into the marketing strategy of Xior Spain.
Antwerp, Belgium – 12 July 2021 – Embargo until 07h00 (CET)
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This residence, located at Don Ramón de la Cruz 37, was completed in 2018 and counts 146 rooms (103
single rooms and 43 double rooms), each with their own private bathroom and 11 of them with a private terrace. The rooftop provides an impressive panoramic view of the city centre, and allows for leisurely comfort in deck chairs. It also has a fully equipped dining hall with a market leading catering service by DoEat, with ample space -for students to share meals and relax. Common areas such as lounges, conference and study rooms, a gym, and a game room provide for the perfect opportunity to encourage the Xior community spirit. Services provided also include 24 hour reception, security cameras and weekly
cleaning/linen service, so that residents can enjoy their stay in every comfort. This residence is located in the centre of Madrid, in the heart of the Salamanca district, next to the so called 'golden mile' a vibrant street full of shops, restaurants and leisure areas, considered as one of the most exclusive and safest areas of Madrid. This centrally located urban residence is the perfect addition to Xior's current offer at the UEM campus just outside of Madrid (residences Picasso-Velázquez).
This asset, located at Boulevard Louis Pasteur 23 in Malaga, has 221 studios (214 singles and 7 doubles),
all equipped with private bathroom and kitchenette. The residence, completed in early 2021 offers a mix of communal facilities such as an upper terrace with panoramic views over the city and the sea, an amazing restaurant, high speed Wi-Fi and cable in all rooms, weekly cleaning/linen service, 24 hour reception, security cameras. The residence is located in the Teatinos district, just a few steps from the Malaga University Campus, the same prime area where Xior has already invested in a development project which was announced in February 2021 1 and which will be operational for the upcoming academic year.
Right in the middle of Avenida de la Palmera 17, this brand-new residence is situated in one of the most
exclusive areas of Seville, the largest student city of Andalusia. This residence will open its doors in September 2021 and is right in front the University of Seville Campus Reina Mercedes. In addition, it is well connected by public transport to the city centre and other universities (UPO, Loyola, EUSA, CEADE, ESIC, …). Students can also enjoy outside sports in the nearby Parque de María Luisa. The residence offers 309 fully equipped studios with their own bathroom and kitchen. Communal facilities and services include
a shared garden, a swimming pool, a gym, study rooms, 24-hour reception, security cameras, weekly cleaning/linen service, high speed Wi-Fi and cable in every room.
1 See press release published on 24 February 2021.
Antwerp, Belgium – 12 July 2021 – Embargo until 07h00 (CET)
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Andalusia is the third most important student region in Spain. It follows directly after Madrid and Cataluña, counting approx. 250,000 students in total. Xior is already active in Andalusia with its residences in Malaga and Granada. With a presence in Seville, Granada and Malaga, Xior would cover the top 3 most important student cities in Andalusia, creating an operationally efficient platform for the local team.
The operational knowledge of the current HUBR team will guarantee a smooth transition, not only for the students but also for Xior. They have successfully opened and smoothly ran the residence in Madrid since 2018 and the residence in Malaga since early 2021.
When the tender offer is accepted, the bundling of the operational expertise of Xior and HUBR will guarantee the successful opening of Seville. The Xior and HUBR brands in Spain are very complementary and share many qualities, including prime locations, high quality and safety standards, a friendly and supportive environment to pursue academic and personal goals, a nutritious catering service of the highest quality….In short, both brands aim to provide students with a modern, safe and healthy environment. For more details on HUBR see their website.
Higher education in Spain has experienced significant growth, modernisation, and internationalisation in recent years. As a result, 40% of Spaniards today have higher education levels than their parents. More young adults are choosing higher education, and the population aged 18-24 is expected to grow by 11% between 2018 and 2025.
This contributes to the growing demand for high-quality, purpose-built student accommodation among more than 1.6 million students enrolled at universities in the country. While there has recently been a surge in investments in student housing in Spain, demand is expected to continue to exceed supply for many years to come.
Spain is also a major destination for international students. Affordable living costs, mild weather, a rich culture and history coupled with a strong education offering has made Spain the top destination in Europe for students within the Erasmus program. Latin American students also see Spain as a highly attractive study destination.
Xior first entered the Iberian market in March 2019, and currently owns 4 operational student residences in Spain (two in Barcelona, one in Madrid and one in Granada) and holds three more residences in the pipeline (Malaga, Madrid and Barcelona). Together this stands for a total portfolio counting approx. 1,500 rooms.
In three years' time, (as per March 2021), Spain has already grown to represent 11% of Xior's total portfolio in terms of Fair Value, with a clear ambition to grow further. This acquisition would be a big step forward in Xior's Spanish portfolio and will help increase its footprint of high-quality purpose-built assets while strengthening its local operational platform in a fast growing, dynamic market. The total amount of rooms operated under the Xior flag in Spain will increase from 1,500 to 2,200 rooms.
Upon completion of this acquisition and including the current pipeline, Xior will be owner and operator of more than 17,500 student rooms spread over 32 cities in Belgium, the Netherlands, Spain and Portugal. All of which are built and operated to offer students a modern, healthy and safe environment to live, study and relax. Spain will represent approx. 15% of the company's portfolio with 10 student residences in the country.
Antwerp, Belgium – 12 July 2021 – Embargo until 07h00 (CET)
Regulated Information Insider Information
The charts below show the theoretical impact of this transaction on the geographical diversification of Xior's portfolio:
| € | Total | ||||
|---|---|---|---|---|---|
| # cities | 8 | 17 | 5 | $\mathcal{P}$ | 32 |
| # assets | 59 | 48 | 10 | 8 | 125 |
| # units | 4.732 | 8,386 | 2,198 | 2,227 | 17.543 |
The companies have designated legal advisers: Pinsent Masons España S.L.P on behalf of SPS and Osborne Clarke for Xior.
Antwerp, Belgium – 12 July 2021 – Embargo until 07h00 (CET)
Regulated Information Insider Information
Xior Student Housing NV Mechelsesteenweg 34, box 108 2018 Antwerp, Belgium www.xior.be
Christian Teunissen, CEO Frederik Snauwaert, CFO Bastiaan Grijpink, CIO [email protected] T +32 3 257 04 89
Xior Investor Relations Sandra Aznar Head of Investor Relations [email protected] T +32 3 257 04 89
Xior Student Housing NV is the first Belgian public regulated real estate company (RREC) specialising in the student housing segment in Belgium, the Netherlands, Spain and Portugal. Within this property segment, Xior Student Housing offers a variety of accommodation, ranging from rooms with shared facilities to en-suite rooms and fully equipped studios. Since 2007, as owneroperator, Xior Student Housing has built high-quality, reliable student accommodation for students looking for the ideal place to study, live and relax. A place with that little bit extra, where every student immediately feels at home.
Xior Student Housing has been accredited as a public RREC under Belgian law since 24 November 2015. Xior Student Housing's shares have been listed on Euronext Brussels (XIOR) since 11 December 2015. On 31 March 2021, Xior Student Housing held a property portfolio worth approximately EUR 1.573 billion. More information is available at www.xior.be.
Xior Student Housing NV, a Public RREC under Belgian law (BE-REIT) Mechelsesteenweg 34, box 108, 2018 Antwerp, Belgium BE 0547.972.794 (Antwerp Register of Legal Entities, Antwerp Division)
This press release contains forward-looking information, projections, convictions, opinions and estimates produced by Xior in relation to the expected future performance of Xior and of the market in which it operates ('forward-looking statements'). By nature, forward-looking statements involve inherent risks, uncertainties and assumptions, both general and specific, that appear justified at the time at which they are made but which may or may not turn out to be accurate, and there is a risk that the forward-looking statements will not be realised. Some events are difficult to predict and may depend on factors outside of Xior's control. In addition, the forward-looking statements are only valid on the date of this press release. Statements in this press release relating to past trends or activities may not be interpreted as an indication that such trends or activities will persist in future. Neither Xior nor its representatives, officers or advisers can guarantee that the parameters upon which the forward-looking statements are based are free of errors, nor can they indicate, guarantee or predict whether the expected results set out in such a forward-looking statement will ultimately be achieved. Actual profits, the financial situation and Xior's performance or results may therefore differ substantially from the information projected or implied in forward-looking statements. Xior expressly does not accept any obligations or guarantees as to public updates or reviews of forward-looking statements unless required to do so by law. This press release has been prepared in English and has been translated into Dutch, French and Spanish. In case of discrepancies between the different versions of this press release, the English version will prevail.
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