CBRE advised Italian alternative investment manager Castello Sgr on securing a €100 mln loan for developing two student residences in Milan.
The Capital Advisors team of CBRE Italy, specializing in helping clients raise capital through equity and debt, led the deal. Castello Sgr used the Casati I and Casati II real estate funds to acquire the land for the two student residences.
One residence, Collegiate Milan North, near the University of Milan-Bicocca, opened in 2023 with 695 beds. The other, located in the Bovisa district near the Polytechnic, is under construction and expects 470 beds by the start of the 2025/26 academic year.
Silvia Gandellini, head of capital markets at CBRE Italy, states: ‘In the current macroeconomic and market context, it is increasingly important for investors in the real estate sector to structure and identify efficient sources of financing. CBRE supports its clients in all areas of real estate consultancy, offering concrete support also in the collection of equity and debt thanks to its global network.’
Massimiliano Rossi, head of capital advisors at CBRE Italy, added: ‘The success of the operation was facilitated by our constant dialogue with the lenders active on the Italian market, which allows us to accompany customers towards an efficient path to access capital. We are pleased to have given our active contribution in this complex operation which will have positive repercussions on the city of Milan and the student housing market.’
This financing marks the first transaction in Italy for Rhize Capital, a partnership between Kinetic Capital and Kayne Anderson Real Estate.
The investment is expected to have a positive impact on Milan's student housing market.
