Colonial SFL and Vita Group form 50-50 joint venture for premium student housing and flex-living platform in Madrid

Type: Partnership · Technology: Hospitality · Country: Spain · Value: $1B · Announced: 2026-09-24

Colonial SFL and Vita Group established a 50-50 joint venture to create a student housing and flex-living platform in Madrid, combining Colonial SFL's urban transformation and asset management capabilities with Vita Group's operating platform. The platform will be established through the phased contribution of three prime urban assets totaling more than 990,000 square feet and 2,200 beds, representing approximately €1 billion ($1 billion) of long-term stabilized asset value. The assets will be contributed between 2026 and 2028, with Vita Student Oria contributing at inception in September 2026, a second Oria flex-living development expected in 2027, and Santa Hortensia's Alpha X urban transformation project expected after completion in 2028. The transaction is expected to generate a seven-year unlevered internal rate of return of approximately 10 percent and is accretive to Colonial SFL's EPRA earnings and net tangible assets while improving its loan-to-value ratio over the medium term.

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