22 Jan 2024 - Press Release
YELDO supports Leonardo Bongiorno in the acquisition and redevelopment of a student housing and co-living complex in Milan
YELDO supports Leonardo Bongiorno in the acquisition and redevelopment of a student housing and co-living complex in Milan
• YELDO Group, as a debt advisor, has supported a pool of private investors led by Leonardo Bongiorno in the acquisition and conversion of a commercial property in Milan, participating in the structuring and issuance of a mini bond.
• The operation involved professional investors with a minimum ticket of 100,000 euros.
• The project marks YELDO's entry into the student housing and co-living segment
Milan, January 22, 2024 - YELDO (https://www.yeldo.com), the European group specialized in institutional-grade real estate deals, announces the completion of a capital raising of 7.8 million euros in support of the acquisition of a building and its subsequent conversion from commercial to residential, located in Viale Certosa, Milan, an area densely populated by students but with a limited housing supply.
In particular, YELDO, as a debt advisor, handled the structuring and issuance of a mini bond reserved for professional investors with a minimum investment ticket of 100,000 euros.
Lorenzo Belloni, Chief Investment Officer of YELDO Group, comments: "The student housing sector is rapidly gaining interest among investors, given the inadequacy of the current supply compared to the demand, fueled by a significant influx of students into our country." Belloni continues: "Milan, in particular, is the city where the potential demand is highest. Currently, the existing supply covers only 6.8% of out-of-town students. Compared to European benchmarks, Milan's estimated gap is about 16,000 beds."
THE OPERATION IN DETAIL
The operation is the second promoted by YELDO in the Certosa neighborhood, a strategic area due to its proximity to major companies and universities, where the conversion of a first building from office to residential is already underway, with an exit announced by the end of 2023 and an IRR of 14%.
The new operation involves a property with a total area of 12,000 square meters, acquired through a share deal between Certosa Immobiliare S.p.A. and a pool of private investors linked to Leonardo Bongiorno. The building will be transformed and requalified, becoming partly student housing and partly a co-living structure for young professionals. The operation is strengthened by the partnership with Habyt, a leader in the management of student and co-living accommodations, active in more than 50 cities across Europe, North America, and Asia, with over 10 years of experience, which has signed a per-let agreement for the lease of the property.
Leonardo Bongiorno comments: "We are excited to have found a solid partner in Habyt for this new joint venture in Build to Rent, which will allow us to create an innovative combination of student housing and co-living in Viale Certosa. With more than 300 beds for students and young professionals, we will address the market demand that is at risk of remaining unmet today. We are also pleased that YELDO supports our development, and we are considering expanding the collaboration to other projects in our pipeline: Viale Certosa will be the first of a series of 'living' projects planned throughout North and Central Italy, where we plan to offer together with Habyt over 3,000 beds in the next 3-5 years."
Lorenzo Belloni concludes: "The Viale Certosa operation meets fundamental requirements for us: in addition to the strategic location, we appreciated the short duration of the commitment required of our investors and the quality of the development plan proposed by the Equity Sponsor. The partnership with Habyt, finally, represents a key element of this initiative: a synergy that translates into a well-defined business project, capable of intercepting and anticipating market trends."
The project also includes the collaboration of the Mike Bongiorno Foundation, engaged in promoting social policies for young people, including the provision of scholarships: the Foundation will cover the costs incurred by some of the most deserving students within the Viale Certosa structure.
YELDO GROUP'S TRACK RECORD
With the Viale Certosa project, the YELDO Group closes 2023 with fourteen operations, bringing the value of financed real estate projects to over 850 million euros in 5 countries.
The YELDO Group focuses on structuring institutional investment products with underlying real estate, with particular attention to the quality of the underlying assets, collateral guarantees, and the balance of risk and return through capital protection and yield mechanisms.
"Over the past year, we have increased the seniority of our investment positions, providing greater capital protection to investors. Almost half of the total capital invested in 2023 was allocated to senior positions, doubling the number from 2022," comments Antonio Borgonovo, CEO and Founder of YELDO Group. "We have prioritized more senior positions for our real estate offerings and focused on Real Estate Private Debt, an asset class that continues to offer interesting returns commensurate with risk."
To learn more about investing with YELDO, sign up to the platform and schedule a call with the Investor Relations Team today.