Aviva Investors has provided €33 million in funding to develop two purpose-built student accommodation (PBSA) projects in the eastern Spanish city of Valencia.
In a statement, global asset management company Aviva said the projects would provide 342 beds when completed. They are being developed as part of a joint venture between Amro Partners and Invesco.
The loan, which complies with the Credit Market Association’s green lending principles, is Aviva Investors’ second student accommodation financing as part of its multi-sector private debt strategy and follows the provision of a green loan for the 283-apartment PBSA scheme at London’s Elephant & Castle in May.
The complex, spread across two sites, is expected to include dedicated teaching space as well as a gym and cinema. According to Aviva Investors, all rooms will be offered on a room-only, half-board or full-board basis, providing a variety of options for students with different budgets.
Sima Kotecha, Head of High Yield Strategies and Property Debt at Aviva Investors, said: “With two of Spain’s leading universities in the city, Valencia is one of Spain’s strongest markets for international and domestic students and an increasingly important PBSA market in Europe.
“Despite this, the company faces ongoing constraints in the provision of student accommodation, although demand continues to grow. We are therefore very pleased to extend our relationship with Amro and Invesco to fund this scheme, helping to continue the delivery of new student accommodation in a strategically important market where we believe its dynamics support long-term investment performance,” Kotecha added.
Pablo García-Morales Osorio, Managing Director and Co-Head of Iberia at Amro Partners, said: “We are pleased to complete our first development financing with Aviva Investors, which builds on the successful joint venture partnership launched in Germany in 2025. We look forward to further developing our relationship in the coming years.”
The investment builds on Aviva Investors’ existing relationship with Amro Partners, with both firms launching a platform focused on investing in the German PBSA market in 2025, aiming to attract €500 million in investment through greenfield developments.
The funding also complements Aviva Investors’ wider investment in real estate in Valencia: in May the company completed the acquisition of a brownfield site in the city as part of its Spanish build-to-rent platform, which accounts for more than 1,200 apartments in Valencia, Madrid, Barcelona and Palma de Mallorca with a gross development value of more than €360 million.