Colonial SFL entra en residencias de estudiantes de la mano de Vita

Colonial SFL, a Spanish real estate company, has entered the student housing market in collaboration with British group Vita Group. The two companies have formed a 50/50 joint venture, which has acquired three properties in Madrid. The venture includes the former IBM headquarters in Santa Hortensia street, a transformation project asset scheduled for delivery in 2028, and two additional properties: Vita Student Oria South, which has already opened and is generating rental income, and Oria North, which will join in 2027.

Together, the three buildings cover 92,000 square meters and offer 2,200 beds, with a long-term stabilized value of about 1 billion euros. The joint venture aims to combine Colonial's expertise in urban transformation with Vita's specialization in student housing marketing and management. The objective is to create more critical mass and a stronger commercial position than each property could achieve individually.

Colonial believes the operation improves the project's profitability in Santa Hortensia and enables an internal rate of return (IRR) close to 10% in seven years, above initial projections. The deal allows Colonial to avoid additional capital expenditures. The company's CEO, Pere Viola, does not need to contribute additional capital.

The agreement also opens the door for potential third-party capital injection in the future, though short-term focus will be on maximizing the value of the three assets. Via X, Colonial's subsidiary, sees the use of Santa Hortensia as a high-value area, and the alliance with Vita allows them to materialize this value before the project's completion, reinforcing commercial positioning and improving the risk profile, according to Viola.

Vita's CEO, Mark Stott, describes the project as a long-term opportunity in European capitals. The deal with the student housing specialist adds to Colonial's recent investments and alliances, including a recent partnership with Generali in Germany and the purchase of Naturgy's headquarters in Madrid alongside private investors.