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The Sponsor of the project is “WeProperty”, a company specialized in property investments. The owners of the company are Edoardo Tranchini and William Gutierrez, who have extensive experience in the Milan real estate market, focusing on small residential developments like “fix and flip” in the north-east area of Milan.
The Sponsor company has previously successfully funded 6 other investment opportunities through Crowdestate, and three of them have already successfully exited:
- Via Esterle 23-25-29, Milan – 346.718 € returned to investors – IRR 12,2% p.a.
- Via Meucci 25, Milan (I) – 215.496 € returned to investors – IRR 11,9% p.a.
- Via Meucci 25, Milan (II) – 108.738 € returned to investors – IRR 11,3% p.a.
The other three investment opportunities are still in the working progress:
- Via Pinturicchio 5, Milan – IRR 11% p.a.
- Via Agordat 13, Milano – IRR 10% p.a.
- Via Nervesa 6, Milano – IRR 11% p.a.
The project’s main details
The investment opportunity consisted of the renovation and transformation of a 220 sqm office into 3 exclusive apartments.
Via Carlo Esterle 23-25-29 is a private, residential development project of 11 studio lofts. The Sponsor bought the properties as commercial units, then renovated and divided them into residential units.
The total value of the project was around 575.00 €.
Expected rate of return: 11,5% p.a.
Location: The unit is located in the North-East area of Milan, in the NOLO district (which literally means North of Loreto district), a new multi-ethnic and vibrant area of the city that has been living a great development in the last few years. This neighbourhood is well-connected with public transportation to the city center.
The fundraising process
The capital gathered from Crowdestate investors was used to complete the building renovation and to cover additional related fees.
The aim on the crowdfunding campaign was to collect 300 000 euros (LTV 52%), which was reached within 48 hours and a total of 375 investors participated in the project, with an average investment of 800 €.
The renovation works started as soon as the fundraising campaign was concluded, and were finished after 2 months, in accordance with the business plan.
After the renovation, the apartments were rented out through the Sponsor’s real estate agency for two years (short and medium-term rental contracts), after which they were sold to a new owner.
Due to the appealing location and attractive apartments, the selling progress was quick and easy. All the apartments were sold with the price planned in the initial business plan.
The return on investment
The strategic location and high quality of the project made this opportunity very interesting and allowed numerous investors to achieve a steady income from their investments.
The interest payments were done monthly for 2 years and at the end of the project, the principal was paid.
The annual return (IRR) of the project turned out to be 12.2% for a total amount of EUR 346.718.
Sponsor’s comments on the cooperation:
What were the advantages offered by the Crowdestate platform?
For the kind of real estate operations which we make, the crowdfunding loan through Crowdestate is an innovative solution, which allows us to grow quickly and realize more real estate transactions at the same time. The possibility to finance part of the capital in an easy and quick way is a great benefit.
Why did you decide on this location? For what reasons did you choose to rent the apartments?
Undoubtedly, NOLO district (which literally means North of Loreto district), is a very interesting area. In the last few years, the area has become an emerging hub of attraction which has been experiencing great development. The area is full of grocery shops, restaurants and is also very close to the university. It is well connected with the city center and now is a dynamic area for the real estate market.
According to the market analysis, this area is perfect for the rental market. For this reason, we took the choice to rent these lofts.
That’s the sixth time with Crowdestate, what is your feedback about it?
The experience with Crowdestate has been very positive, the team is very professional and available at any time. For this reason, we have continued to work with Crowdestate: the platform is trustworthy and flexible. We would like to keep this beneficial partnership for our next activities in the real estate market.
Crowdestate’s comment on the project:
Via Carlo Esterle gave 375 investors the opportunity to participate in a favourable real estate project managed by a successful real estate company. It has been a good investment, with a fixed return of 12% per annum, with monthly payments over two years, which is certainly an important aspect as it makes the investment opportunity even more valued.
A second point that we want to highlight is about the story of this project. In fact, Esterle opportunity has been the first campaign of fundraising in Italy, so for us, it is also somewhat a cause for celebration. The investment opportunity launched on the platform aims to be serious, clear and with a good return, which this project also offered.
Ultimately, we want to add appreciation to “WeProperty” with which we have built a beneficial partnership for two years. We are glad to this special collaboration with the Sponsor and we are convinced to keep it in time.