Redbrick Investment Group acquires residential property in Milan

This 1960s-era, seven-story building in the Piazzale Susa area boasts over 60 residential units and two retail spaces, with nearly all units currently leased.

The project, spearheaded by Milan's Studio BE.ST., involves renovations to both common areas and the building's facade, with a focus on significantly improving the building's energy efficiency.

This acquisition signifies Redbrick's first foray into real estate securitization, a financial process that potentially generates returns by bundling and selling off portions of the investment.

Alexio Pasquazzo, founding partner of Redbrick Investment Group together with Nicola De Martino, said: ‘This acquisition represents an excellent opportunity to expand our AUM and to create value for us and our investors. It can be regarded as a virtuous example of the energy transition of the real estate stock of the city of Milan and one of the first real estate securitizations in the Italian market. We believe that for this reason, it will represent a reference point for the real estate investment market in Italy.’

Umberto Rasori, CEO of Zenith Global, added: "Real estate securitizations increasingly represent a flexible tool for financing real estate transactions, with the opportunity for investors to diversify their investment portfolio without direct management of real estate assets.’

Redbrick utilized a special financial structure called a securitization vehicle to complete this acquisition. Within this structure, Redbrick Advisors will act as the asset manager, overseeing the property. Zenith Global will take on the role of the master servicer, handling the day-to-day operations of the investment. Banca Akros arranged the deal, while Banco BPM provided the senior loan financing.

Legal advice to Redbrick Investment Group was provided by Matèria and Jones Day, while Banca Akros and Banco BPM were assisted by DLA Piper.