TPG Real Estate and Round Hill Capital to develop student and residential housing in Lisbon

TPG Real Estate and Round Hill Capital have acquired, through a new joint venture, a site comprising approximately 39,000 square meters (420,000 square feet) of buildable area in central Lisbon, Portugal.

TPG Real Estate and Round Hill intend to develop high-quality, purpose-built student accommodation and residential apartments on the site.

“Driven by Portugal’s strong economy, we have witnessed increasing demand for high-quality, convenient and centralized living spaces in Lisbon,” said Michael Abel, partner at TPG Real Estate.

Financial terms of the transaction were not disclosed.

The acquisition marks TPG Real Estate and Round Hill’s first joint transaction in Portugal, a country that exhibits positive investment fundamentals, a housing demand/supply imbalance, and robust economic performance.

Situated at Campo Pequeno in central Lisbon, the development will provide 390 purpose-built student accommodation beds and up to 250 residential apartments. The plans also provide for dedicated amenities and common areas for the students, as well as shared commercial space for all residents. Campo Pequeno is an established residential area that benefits from extensive neighboring facilities and excellent transport links. The site is a short walk to the University of Lisbon central campus and other local universities, colleges and business schools, with easy access to the city’s historic center and Lisbon Airport.

On completion of construction, the student accommodation will be managed by Nido Student, Round Hill’s established operational platform and brand for European student accommodation.

“The acquisition of the development asset at Campo Pequeno is TPG Real Estate and Round Hill’s first joint transaction in Portugal, and Round Hill remains committed to continuing to look to make further investments in student housing and residential property in line with our existing strategy and growth plans in the country and in other select European markets,” said Michael Bickford, founder and CEO of Round Hill Capital.

Portugal is a market that Round Hill is focusing on with this acquisition and the announcement in June 2017 that the firm has committed €100 million ($113 million) to develop a significant mixed-use development project in Porto. Works continue to progress well on this project that will comprise student housing and residential apartments, a supermarket, food court/restaurant area and office space, surrounded by significant open areas and green public spaces.