Patron Capital, Freo Group and Bluestone plan to invest €250m to target residential assets in Italy.
The new partnership which intends to acquire and develop residential projects in Milan, has agreed to buy its first site.
The partnership has bought a former light industrial site, located at via Folli 24 in the Lambrate district, with a plan to redevelop the dis-used buildings into a residential project, comprising 40 units.
Funding for the acquisition comes from Patron Capital’s Fund VI. The pan-European institutional investor raised €844m at the fund’s final close announced in January.
Matteo Busà, investment director and partner at Patron Capital, said: ““We strongly believe in the fundamentals of the Milanese residential market and are pleased to be working alongside FREO and Bluestone and leveraging their local experience and network alongside Patron’s international experience and funding capacity.
“Both partners bring impressive track records in the delivery of residential projects in Italy and Europe and have relevant experience in Milan, and we believe the via Folli project will be a very successful first milestone for the partnership.”
Paolo Rela, the head of asset management in Italy at Freo Group, said:
“This new joint venture with Patron and Bluestone is a strong endorsement of our ability to work alongside both institutional capital and local developers to provide best-in-class solutions for both.
“We are confident that demand will remain high for good quality new build developments that offer attractive outside space and state-of-the-art energy efficiency credentials, and this new platform is well-positioned to originate and execute residential projects in the strong Milanese market.”
Andrea Bezziccheri of Bluestone, said: “The strategic partnership with Patron and Freo marks the beginning of a new era for Bluestone, working with two new international partners to continue delivering real estate projects to the market.
“We are extremely proud of our longstanding track record in this space, having been active for more than 20 years, and to have been identified as the operator of choice for international investors looking to work in the Italian real estate market is a strong endorsement of this reputation.”