Portugal: Student and coliving group BigCity and Reditum Capital have agreed joint venture funding for the development of a PBSA project in Porto.

The partners will invest €30 million (£25.8 million) into the 241-bed BigCity Asprela, a development in Porto’s main university district. The funding marks both partners’ initial foray in the Portuguese market.

The 12-storey building is expected to be complete in July 2022, ahead of the start of the academic year.

Targeting international students, the development will be operated by CRM Students and will feature concierge and reception services, TV and gaming lounge, study areas, communal and private dining, a rooftop terrace and gym.

Mark Stephen, founder and managing director of Reditum Capital, said: “This transaction enables our investors to access a fantastic addition to Porto’s student accommodation offering. BigCity Asprela is a compelling opportunity, as there is a significant supply-demand mismatch in Porto, owing particularly to the growth in international students.”

Charlie Alcock, founder and chief executive of BigCity, added: “Despite our first development being played out against the backdrop of the pandemic, the grade A location and high quality of design ultimately prevailed. This is exactly the type of development we want to be offering our investors – well located, interesting, sustainable buildings in the purpose-built student accommodation and co-living sectors, creating a stylish, inclusive living experience for the residents. We couldn’t have wished for a better start”.

BigCity Asprela is the first of several PBSA and coliving sites the partners have identified in Spain and Portugal.