The Student Hotel (TSH) has reached an agreement with UniCredit for social and environmental impact financing of €145 mln for the development of two new locations in Rome San Lorenzo and Florence Belfiore.
SACE, the financial insurance company specialised in supporting the growth and development of businesses and the Italian economy through a wide range of tools and solutions, supports the financing with a green guarantee of €54 mln.
The loan includes terms for the achievement of a BREEAM Very Good rating for both locations and adherence to the EU Taxonomy for sustainable activities as criteria for the green guarantee by SACE.
Charlie MacGregor, founder and CEO of TSH, said: 'We are very pleased to announce a social and environmental impact financing agreement with UniCredit, further strengthening our relationship that was established in 2016, and with support from SACE.
'The sustainable and impact finance terms align with TSH’s continued commitment to minimize our environmental impact and maximize our impact on local communities as part of our growth strategy.
'We are proud to be able to redevelop these previously underdeveloped areas in Rome and Florence to become exciting locations where the local communities, guests, students, companies can come together.'
TSH and UniCredit have agreed to include impact financing terms in the form of a discount on the interest rate, which TSH has committed to reinvest by providing students from disadvantaged socio-economic backgrounds scholarships in the form of rent reductions.
The impact financing terms are in line with the bank’s social impact banking programme. UniCredit is acting as arranger, underwriter, bookrunner and agent. The loan follows existing financing agreed between TSH and UniCredit for hybrid hospitality model locations in Florence Lavagnini, Bologna and Vienna.
Redevelopment of San Lorenzo and Belfiore
The projects will support the regeneration of the San Lorenzo district in Rome and the Belfiore district in Florence, revamping the areas for the local communities and expanding the availability of student housing in both cities. With these two new locations, TSH will have a total of five locations in Italy.
Construction of the Rome development will officially start in March 2022. The 396-room hotel with a floor area of over 22,750 m2 and a total investment of over €90 mln by TSH is due to open in winter 2023/24.
The location will include a restaurant, a bar, meeting and co-working spaces and a gym, but also a public park of over 15,000 m2 that is accessible to all.
In Florence, the development consists of a 550-room hotel with a floor area of over 80,000 m2. Construction of the above ground has started in September 2021 and the hotel is expected to open before summer 2024.
TSH will invest over €160 mln in the project. Besides hotel rooms, a bar, gym, co-working spaces and public park, the Belfiore location will also include a public running track on the rooftop of the building.
Amber Westerborg, TSH Director of sustainability & impact, said: 'At TSH, we’re continuously working on creating inclusive and impactful communities, in a sustainable manner.
'This agreement with UniCredit and SACE allows us to offer students from a disadvantaged socio-economic background rent reductions at our locations during their time at university and lays a foundation upon which they can start building their future. The agreement also recognises our philosophy to create futureproof projects that are sustainably developed and operated.'
The financing supports TSH’s growth strategy as it looks to open 10 hotels across Europe by 2025, taking the total amount of operational hotels to 25.
Deloitte acted as debt advisor and Clifford chance acted as legal counsel to TSH. Bonelli Erede acted as legal counsel to UniCredit.
