Interview with Matteo Cattaneo, Head of Transactions at Yeldo

In our latest interview, we sat down with Matteo Cattaneo, Yeldo’s Head of Transactions. Matteo is at the forefront of shaping the company's investment strategy, blending deep industry knowledge with strategic foresight. Discover how he steers complex transactions and responds to the dynamic challenges of the real estate market.

What is your role at Yeldo, and what does it entail?

I am Matteo Cattaneo, Head of Transactions at Yeldo. To explain my role, it’s helpful to first provide an overview of how our corporate workflows operate.

My responsibilities are primarily divided into two main areas: origination and analysis of investment projects, and the execution of projects that proceed further, encompassing due diligence and the financing of our investment tickets.

When a new opportunity arises, the first step is to evaluate it based on its characteristics to determine whether it aligns with our objectives and the needs of our investors. This phase includes a preliminary risk analysis and an assessment of its consistency with our targets. If the analysis is positive, we move on to pricing—determining the cost of capital—and structuring, which involves defining agreements with the sponsor and negotiating between the parties.

Once these stages are successfully completed, the due diligence process begins. This is crucial to thoroughly examine every detail before proceeding to the actual execution, which includes the creation of financial vehicles, drafting financing contracts, investment agreements, bonds, and verifying guarantees and documentation. Only when everything is in order is the capital disbursed.

The investment process was recently redefined to ensure even greater rigor in project management. In addition to the aforementioned activities carried out internally, we have also established two key moments with an investment committee—an independent body of external experts that provides an impartial perspective to ensure even greater transparency and authority.

The first meeting with the committee occurs when we reach a commercial agreement with the project sponsor. At this stage, we present the project and our strategic approach, receiving guidance on any risk areas to further investigate during the due diligence phase. The second meeting takes place after due diligence, to approve the results and outline the next steps. Although the committee’s opinion is not binding, it serves as a valuable support for making informed decisions and enhancing the quality of our process.

How does your role contribute to Yeldo’s initiatives?

As I mentioned earlier, my role is cross-functional and spans all phases of our process, ensuring coordination and consistency. This means mapping every opportunity within our pipeline, starting from the less mature initiatives, which we include in a "watch list" to monitor and attempt to engage with when they are ready. From there, together with the CEO and the Chief Investment Officer, we determine how to prioritize the various projects in the pipeline, assessing the feasibility of each project and the complexity of reaching funding, as well as analyzing the fundamentals of the project's business plan, existing guarantees, and commercial agreements with various sponsors.

Although our team primarily handles fronting—that is, directly managing relationships with counterparties—the success of a project depends on the entire corporate ecosystem, which includes relationships with investors. Occasionally, timing misalignments or the need to improve internal information flows may arise, and this is where my contribution becomes critical: ensuring that every phase proceeds smoothly and that the work is well-orchestrated.

The real estate team, which I consider the beating heart of the company, is the foundation of everything. However, our activities constantly integrate with other business units. For instance, we collaborate with the financial product team to structure financial vehicles or with the marketing team to create effective presentations for investors. My role, in this sense, serves as a bridge to ensure that all parts work synergistically and in perfect alignment, preventing information loss among various stakeholders.

How do you evaluate the potential of a real estate investment? What metrics and tools do you use?

The main parameters are essentially four.

Location is the starting point, the crucial element. It drives macroeconomic trends, determines demand, and influences the success of a project. The same product in a different location might not perform as well. We also assess how “liquid” a product is: a good location ensures greater liquidity, which is essential for guaranteeing quick repayment timelines.

Since our role is not that of a principal investor but rather a financial partner for real estate developers, it is crucial to analyze who the developer is. We collaborate with reliable counterparties with solid reputations and proven track records. Having a well-known sponsor with market experience makes the fundraising phase much smoother.

Another key aspect is exposure within the capital structure. Even with a good location and an excellent sponsor, we avoid taking on excessive cost exposure. For instance, we consider how much capital the sponsor is willing to put at risk: as a company policy, we have minimum thresholds that cannot be exceeded without requesting additional guarantees.

Finally, we monitor the LTV (Loan-to-Value), while recognizing that property values can fluctuate significantly over time. This makes risk management an essential part of our evaluation. For each initiative, we conduct sensitivity analyses to stress-test the main variables, such as revenues, costs, and timelines.

What do you find most exciting about your job? And what do you find most challenging?

I find working in real estate stimulating because it is a multidisciplinary field: it spans from technical activities related to properties to financial analyses, while also encompassing legal, tax, and negotiation aspects. Negotiation, in particular, is one of the elements that excites me the most, but it is also among the most demanding: it requires constant interaction with a wide range of stakeholders, including partners, advisors, providers, and counterparties.

Another challenge in this sector is its dynamism. The real estate market is not only volatile, like the stock market, but also highly erratic: a socio-economic shift or regulatory change can upend the profitability of a project that initially seemed solid within a matter of months. This demands extremely fast reaction and execution times. Often, entering and exiting a transaction quickly, or faster than originally planned in the business plan, becomes essential and decisive for the success of the project.

What trend or transformation do you believe will have the greatest impact on real estate investments in the coming years?

Among the emerging trends in asset classes, I see great potential in the living sector and specific segments of residential real estate, such as senior living and student housing. The aging population is driving a growing demand for senior facilities, while student housing is essential in Italy, particularly in cities where the cost of living is prohibitive for young people. Another area is serviced/branded residences, a sector that is still underexplored in Italy compared to some international markets but is gaining traction. These combine the concept of owned residences with hotel-like services, typically high-end. Often, if well managed by the brand/operator, these solutions can also generate income during periods when the property is not in use.

Another rapidly growing sector is data centers, an asset class that is extremely capital-intensive and, in my opinion, a hybrid between real estate and infrastructure. This makes it unsuitable for all players, given the significant financial capacity required. Innovative solutions are also being explored, such as underwater data centers, which reduce the energy required for cooling. However, as of now, there are no operational examples.

On the other hand, the office sector is facing a crisis, beginning with the pandemic, which directly led to the spread of remote working and the dematerialization of corporate spaces. Conversely, the logistics sector is expected to remain robust, at least in Italy, where there is a high demand for quality infrastructure.

Finally, the green focus is set to become, or perhaps already is, an essential prerequisite across all asset classes. It is no longer an added value but a necessity, driven by regulations and the growing demand for sustainable solutions.

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