Global alternative asset manager Cheyne Capital has provided a €250m loan to Bain Capital Special Situations to help fund a residential project in Italy.

The deal represents the fifth transaction that Cheyne Capital and Bain Capital have completed together.

The latest loan will fund Bain Capital’s development of around 170 new homes in the Lambrate district in partnership with Borio Mangiarotti and build around 600 new homes in the former Trotto area of Milan in partnership with real estate manager Hines.

Bain Capital is developing the Lambrate district project in partnership with Borio Mangiarotti through the Bistrot Fund, managed by Natissa SGR. Borio Mangiarotti will serve as the general contractor for the development. The Trotto residential complex will be part of the new urban district masterplan, called EXTM by Hines.

Daniel Schuldes of Cheyne Capital said: “We are very pleased to have been able to support Bain Capital and Borio Mangiarotti with the acquisition of these exciting landmark residential development projects in Milan.”

Jan Moench of Cheyne Capital, said: “These are impactful projects delivering approximately 800 much-needed new homes, and we now look forward to continuing to support Bain Capital and Borio Mangiarotti with our financing of the construction phase.”

Rafael Coste Campos, European head of real estate at Bain Capital Special Situations, said: “We are pleased to participate in the development of EXTM, a project aimed at reconnecting and transforming Milan’s urban fabric. We estimate Milan will add nearly 30,000 more households by 2030, accelerating the current supply and demand imbalance in the residential market.

“With this project, we will help provide high-quality, modern and energy-efficient residential units critically important to the local community. We are thrilled that there’s important emphasis on environmental and social sustainability, with the goal of generating a positive long-term impact for the community and our investors.”

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