Swiss Life Asset Managers Partners With Westwind Capital To Acquire 1,400-Bed Spanish Student Housing Portfolio
Swiss Life Asset Managers has partnered with Westwind Capital to acquire a portfolio of more than 1,400 student housing beds in three Spanish university cities, the firm announced Oct. 5. The portfolio spans Madrid, Valencia and Granada, and the properties will continue to be managed by Vibe Stay, a specialist student housing operator.
The acquisition advances Swiss Life Asset Managers' European value-add residential strategy, which the firm said it is building through partnerships and co-investments with sector and local specialists.
Portfolio Details: Madrid, Valencia and Granada Student Housing
The portfolio comprises three purpose-built student residences totaling 1,406 beds:
- Madrid: 837 beds in a residence next to the south campus of the Polytechnic University of Madrid. The property is partially operating for the 2026-27 academic year, with 565 beds available and a 272-bed second phase under construction.
- Granada: 293 beds in a residence at the Campus de la Salud, adjacent to Hospital Universitario San Cecilio and the Faculty of Health Sciences. The property has operated since September 2024.
- Valencia: 276 beds in a residence in Benicalap, near Line 4 of the tram network serving major university campuses. The property is scheduled to open for the 2027-28 academic year.
Merkel Capital is the seller of the portfolio, and Westwind Capital is the buyer. Vibe Stay will remain the operator of all three residences.
Swiss Life Asset Managers' Value-Add Strategy
Swiss Life Asset Managers said the acquisition allows it to broaden its European value-add residential platform in collaboration with experienced sector specialists and local partners.
Florian Bauer, Head Real Estate Project Development & Co-Head Value Add at Swiss Life Asset Managers, said in the announcement (translated from the French original): "This investment and our partnership with Westwind Capital reflect our confidence in the long-term potential of residential real estate. They also underline our ambition to work with leading investment specialists. With this attractive value-add opportunity, we are further strengthening our commitment to the booming segment of alternative housing in Europe."
The portfolio offers several value-creation angles. The Madrid asset is not yet fully operational, with 272 beds still under development, and the Valencia residence is not scheduled to open until the 2027-28 academic year. Retaining Vibe Stay as operator preserves continuity of management across the three properties. For Westwind Capital, the transaction represents its entry into Spain's student accommodation market.
Spain's Student Housing Market: Supply and Demand
Spain had approximately 118,762 operational student-residence beds at the end of 2025, and the national provision rate stood at about 8%. By comparison, one industry source cited provision of approximately 31% in the United Kingdom. Nearly 5,550 additional beds are expected to enter service in Spain during 2026, with another 10,500 planned for 2027-28.
Demand is concentrated in the three target cities. Madrid is expected to receive the largest volume of new student housing supply, with approximately 5,144 planned beds, while Valencia has about 2,388 planned beds. Valencia has about 110,000 university students, and the Benicalap residence is positioned to serve the University of Valencia and Polytechnic University of Valencia campuses via the tram network. Granada's residence sits beside the city's health-sciences campus.
Undersupply has coincided with high occupancy. New-generation Spanish residences achieved average winter occupancy of 95.6%, according to Savills data, while prime yields remained around 4.5%. CBRE has described structural undersupply as a factor supporting high occupancy and sustained rental growth in Spain and other major European student housing markets.
Investment Activity in Spanish Student Housing
Investor activity in the sector has remained steady. CBRE reported more than €290 million of Spanish student housing investment in the first quarter of 2026 and €780 million of student housing transactions during the first half of the year. A separate market report put first-half 2026 activity near €660 million, a discrepancy that likely reflects differences in transaction coverage or categorization among data providers. CBRE also reported that student housing accounted for more than €2.3 billion of Spanish Living transactions in 2025, or 43% of total Living investment.
Outlook and Underwriting Considerations
The portfolio's two partially delivered or pre-opening assets carry delivery and lease-up considerations, as occupancy figures for stabilized Spanish residences may not apply to newly delivered phases. Madrid and Valencia are also attracting substantial new supply, and prime yields near 4.5% leave limited room for underwriting error. Vibe Stay's management of all three properties provides consistency but also concentrates operating exposure in a single operator.
For Swiss Life Asset Managers, the transaction extends its partnership-led approach to European residential investment into Spain's student housing segment.
Sources
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