WP Carey has invested €10M in the acquisition of a vacant data center building in Northern Spain from Solvia. The NYSE-listed REIT plans to refurbish and re-purpose the property as a student residence taking advantage of its location near the Basque Country university’s campus in the city of San Sebastian.
The property, which was built as a data center for Banco Guipuzcoano (acquired by Banco Sabadell in 2012) traded at c. €10M and has a built area of 18,000m² distributed across 7 stories including 3 basement floors. It was built in two phases in 1994 and 2005.
This investment fits in the group¡s strategy of creating a portfolio of several thousand beds across the Iberian Peninsula over the short and medium term along with joint venture partners such as Princeton Investments and Temprano Capital Partners in cities such as Lisbon, Málaga, Madrid, Salamanca and Valencia. In fact, in March 2018, CSH PAN European Holding Cooperatief, a fund managed by WP Carey Inc, opened its first student residence in Portugal. The development, known as TSL Marques de Pombal, was a refurbishment of the former CTT post office headquarters and will be operated by Collegiate.