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The Sponsor of the project was Diamond S.r.l. The owner of the company was Floriana Pagliano.
The company had been active in Milan real estate market for several years, focusing on small residential developments and its transformation.
The Sponsor’s company had already successfully funded 3 other investment opportunities through Crowdestate:
1.Via Genovesi 1, Milan – 148 500 € returned to investors, IRR 12,1% p.a.
2.Via Fiuggi 12, Milan – 75 460 € returned to investors, IRR 12,15% p.a.
3.Via Malatesta 8, Milan – 104 734 € returned to investors, IRR 11.36% p.a.
The project’s main details
The investment opportunity consisted of the renovation, transformation and the change of destination of use of a 70 sqm commercial property.
The total value of the project was around 207 000 €.
Expected rate of return: 11.36% p.a.
Location: The unit was located in the “De Angeli / Rembrandt” Milan district, an area very well connected and adjacent to the city center.
Looking at similar properties for sale in that area, the proposed price was conservative.
The fundraising process
Crowdestate loan aimed to finance the renovation costs and other related fees. The fundraising reached 100 000 € (LTV 48%).
353 investors participated with an average investment of 283 €.
The project got funded in 24 hours.
The renovation works were finished before the COVID lockdown period. The apartment had already been sold which was in accordance with the business and economic plan. The purchase proposal had been accepted before the ending of the renovation works.
The project progressed faster than expected which showed the appeal of the location and attractiveness of the price.
The return on investment
The accuracy and speed of the works as well as the high quality of the project made the investment develop faster than originally expected.
The interest payment was scheduled by the end of the year, but the funds got credited to investor accounts by the end of July.
The final annual return for investors turned out to be 11,36% (IRR).
Sponsor comments on the cooperation:
What were the advantages offered by the Crowdestate platform?
For a real estate investor, the possibility to work with Crowdestate represented a great chance. The financial resources raised through Crowdestate allowed us to speed up the rhythm of growth. Furthermore, this platform provided easy access to credit, which means more activities in the real estate sector.
What was the capital structure for the real estate investments?
The real estate operations were financed by venture capital funds, bank loan and crowdfunding loan. The mix of these three resources allowed us to minimize the risk.
What is your feedback about Crowdestate?
The experience with Crowdestate has been very positive, staff is well trained and available at any time. The team is very professional and cordial.
Crowdestate comment on the project itself:
This real estate opportunity offered the possibility for 353 investors to take part in this exclusive investment in the heart of Milan. This investment was run by an important real estate development company who provided a very high economic return.
As Floriana mentioned, platforms like Crowdestate make it much easier for real estate companies to obtain the needed finances for developing their projects. In that way, we support and facilitate the growth of SME.
Crowdestate and its investor’s community provided the financial support as well as contributed to the promotion of the project, through the social campaign, news publication and press release. This allowed a considerable media impact for the Sponsor and its project.