Student Market Spain

Demand (3)
• 84 Universities: 50 Public and 34 Private – 1.5 million academic students (1)
• Savills estimates 140.000 students seek PBSA (JLL estimates 375,000 students (25%) requiring accommodation)
• From 1,5mio students, 95.000 students are international (6.3%), excl. 40.000 Erasmus Students
• Spain is an increasing destination of choice for wealthy South American students (now 25%), after EU students (45%)
• Main destinations chosen by international students: Madrid (28%), Barcelona (15%), Valencia (4%), Alicante (3,5%)
• Asian demand is growing, representing 10%
Supply (4)
• At beginning of 2015 there were 1.100 student residences, providing 90.000 student beds
• 50% is public university owned, 5% is private university owned, 45% is owned and operated by private owners
• Resa is largest private operator with 8,000 beds under management in leaseholds with Universities
• The Student Housing Company is 2nd largest private operator with 2,600 beds under management (by 2018)
• PBSA in Spain is categorized into (a) Student Residences (65,000 beds) and (b) Residential Colleges (25.000 beds)
• The majority of the existing supply hasn’t been modernized over the last two decades
• Many Residential Colleges ‘Colegios Mayores’ are owned and operated by Public Universities
• No new projects were initiated over the last decade due to heaviest real estate crisis ever
• Complete absence of adequate PBSA with focus on students/parents with high purchase power (1)
Source: JLL, The Spanish Student Housing Market, March 20

Market Opportunity

1. Unique market potential for specialized Developer-Operator in immature PBSA market
2. Limited funding capacities of Universities to renovate their existing residences
3. Outdated and obsolete existing student residences (target: refurbishments)
4. Shortage of high-quality accommodation in Spain (target: new built)
5. Residential rents out of reach for many students in target cities
6. Post-real estate crisis. Land acquisition opportunities
7. Increasing interest from international investors
8. Start of new economic growth cycle – timing
9. No PBSA operators targeting high-end market
10. Medium term rental growth potential is strong
11. Low Developers’ competition in secondary student cities
12. University students are increasingly international and mobile
13. Spain alternative destination of choice for international students
14. Proven business case in UK. Strong market performance over last decade
15. Shift in destination of choice due to high tuition fees in UK. 12x lower in Spain
16. New Asset Class. Developers’ competition in Continental Europe Mainland is low
17. Crosslane one of first Developer-Operator of student accommodation in Cont Europe

The Product

Prime Student Living España
Prime Student Living is the visible brand behind the operational activities of CREE. Pending on the forward funding structure, Prime will provide a long-term triple net rental contract with the committed Fund Investor. Prime will also be operational for third party investors that allows an exponential growth of the brand on its own.
Procuct Criteria Prime Student Living
• Location: Close to University campus, city centre or public transport hub on walking distance
• Rooms: En-suite individual rooms, double bed rooms and suites
• Meals: Full-board 3x meals (optional), typically included in monthly rents
• IT/Digital: High speed Wifi, online applications for students to reserve room, meal, laundry, bicycle.
• Amenities: GF-experience, 24h reception, lounge, bar-restaurant, coffee-corner, gym, library, study rooms, game rooms, laundry, cycle storage, external swimming pool, rooftop, cooking areas for student use.
Income producing amenities
Laundry, additional room cleaning, additional speed wifi, game equipment (table football, pool,..), vending services, food from 24h cafeteria, gym membership (external gym), locker/safe, car/motorcycle parking.