Nuveen Manages EUR 220 Million for Korea Local Finance Association, Invests in Spanish University Dormitories

Largest Private Student Accommodation Investment in Europe

Nuveen Real Estate, a real estate investment management firm, is investing in Spanish university dormitories using funds managed on behalf of the Korea Local Finance Association.

On July 2, Nuveen Real Estate announced that it has established a separately managed account (SMA) with 220 million euros (approximately KRW 387.8 billion) entrusted by the Korea Local Finance Association. Through this vehicle, the company plans to focus on core-plus real estate equity investments across Europe. The core-plus strategy is a moderate-risk, moderate-return investment approach that targets high-quality, well-located properties (core assets) with stable rental income from reliable tenants, while also seeking additional capital gains through renovations or improvements to the lease structure. Mirae Asset Global Investments is participating as a co-investor and the domestic asset manager for the Korea Local Finance Association.

The first investment is the acquisition of 'Bravo!', a private student accommodation (PBSA) portfolio spanning seven university cities in Spain. The portfolio includes currently operating assets in Madrid, Granada, Salamanca, and Murcia, as well as three development projects located in Zaragoza, Valencia, and Seville, totaling 3,323 units. In terms of transaction size, asset scale, and geographic reach, this is considered the largest private student accommodation deal completed in Europe this year.

Randy Giraldo, Head of Europe at Nuveen Real Estate, stated, "The residential sector in Europe, especially private student accommodation in Spain, is an attractive investment that aligns well with the core-plus strategy. We hope to build a diversified portfolio that can deliver strong results for our Korean partners."

Song Chang-eun, Head of Americas and Europe Real Estate Team at the Korea Local Finance Association, emphasized, "Core-plus real estate equity investments in Europe are expected to provide attractive risk-adjusted returns over the long term. We are confident that this collaboration will create tangible value for our beneficiaries."

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