Nido Living secures €210m loan from Aareal Bank

Aareal Bank has structured and provided a €210 mln loan for Nido Living's student housing portfolio in Spain and Portugal. 

Spain

This portfolio consists of ten properties in major university cities (Madrid, Seville, Valencia, Lisbon, and Porto) and contains around 3,000 student rooms. 
Aareal Bank served as the arranger, facility agent, and security agent for the deal. 
The financing is intended to help Nido Living and its shareholder, CPP Investments, expand their presence in the growing Spanish and Portuguese student housing markets. 
Many of the properties in the portfolio have strong environmental credentials, with most holding BREEAM "Very Good" certifications, allowing a significant portion of the financing to be classified as a "Green Loan" under Aareal Bank’s Green Finance Framework.
Benjamin Walter, head of Alternative Living Properties at Aareal Bank, said: “The European PBSA sector is increasingly attractive for its stable occupancy rates, resilient demand, and long-term, inflation-protected income streams. We are honored to support this new partnership with Nido Living and CPP Investments in delivering high-quality, sustainable student housing in some of Iberia‘s most attractive university markets across Spain and Portugal.”
Ryan Lee, CFO at Nido Living, added: “We are delighted to have successfully closed this financing in partnership with Aareal Bank. Their deep understanding of the student accommodation sector and ability to navigate the complexities of a cross-border, multi-asset transaction were instrumental in achieving this outcome. The team’s strategic guidance and execution capabilities have proven invaluable throughout the process.”
For this transaction, the lenders received legal advice from Slaughter & May, Cuatrecasas, Uria, and Elvinger Hoss Prussen. Nido Living's advisors included Eastdil Secured as the financial advisor, Clifford Chance as the legal advisor, and PJLM. Knight Frank performed the portfolio valuation.