CHALLENGE
Collegiate AC had sourced a site in north Milan with their option expiring within 2 months to deliver 703 student beds, close to the Bicocca University. They approached Savills to run a streamlined process to idenfity a partner who shared similar views on the Italian market and had appetite to partner with Collegiate for their first venture into this nascent sector for Italy. If we were unable to secure a partner and agree terms in time, then it is likely that Collegiate’s option on the land would have expired and the land sold to another party.
SOLUTION
Savills identifed a shortlist of parties who had previously expressed an interest in entering Italy in previous conversations, we then helped underwrite and analyse the Via Frigia seed asset to see if the returns produced would work for these parties in a first instance, ahead of considering a pipeline. We conducted a series of investor meetings over a 2 week timespan with Collegiate in London to see who would be the best match both financially and culturally.
RESULTS
We were able to secure a partnership with Proprium Capital Partners, a new entrant into the Italian PBSA market, and helped form a synergy that is now looking at the pipeline initially proposed by Collegiate, as well as expanding even further. We formed a JV between both parties within 6 weeks, which is a remarkably quick timeframe given the nascence of the market and the time required to discuss and agree all of the terms of the investment.