Via Torino 37, Sesto S.G, Milano, Italy (I)
Renovation of a 8 units apartment building
- Start of investment period15.10.2020
- Start time01.10.2020 11:00
- Asset classResidential
- Investment typeDevelopment
- Investment end date31.12.2021
- Remaining term14 months
- Expected rate of return11.5% p.a.
- Expected cash yield%
- No of investors614
- Goal€250 000
Via Torino 37, Sesto S.G, Milan, Italy investment opportunity involves the complete renovation of a building, divided into 8 apartments on 4 floors and located in the immediate proximity of Milan, in “Sesto San Giovanni” district.
The total space on which the project is developed is approximately 640 m2 of residential areas, in addition to common spaces and outdoor areas.
The Sponsor company of the project, “GC Immobiliare”, has signed a preliminary agreement to purchase the property by the end of October 2020 and will proceed with the renovation work immediately afterwards.
The low purchase value of the entire property, combined with the recent incentives introduced by the government on improving building energy efficiency and the strategic area that has seen sales prices rise in recent years, make this investment opportunity very attractive.
In addition, the Sponsor has already sold two apartments out of eight, for a total amount of 450 000 Eur.
The Sponsor, through this first fundraising tranche, is raising a portion of the capital required for the purchase of the property. The total cost of the project is approximately 1 480 000 Eur and the Sponsor contributes with an important share of the equity of 750 000 Eur. The crowdfunding loan initially contributes with a maximum amount of 250 000 Eur (minimum goal is 100 000 Eur). Remaining funds are represented by pre-sales for at least another 250 000 Eur. A new fundraising tranche will be launched, if needed, to cover part of the construction costs, once the building purchase is finalized.
The expected return for investors is 11% on an annual basis with interest payments on a quarterly basis (11.5% IRR). The repayment date of the loan is expected within 15 months, by December 2021. The sponsor has the possibility to repay the loan earlier, in the event that the renovation and sales of the apartments proceed faster than planned.
The loan is secured by a pledge on 50% of the shares of the Sponsor company.