Aareal Bank provides green loan to Proprium

Aareal Bank has provided a €172.7 million loan to Proprium capital partners to refinance two high‑quality purpose‑built student accommodation (PBSA) assets in Milan. 

Benjamin Walter, Aareal Bank

Both properties have qualified for green loan financing. The transaction marks Aareal Bank’s first financing for Proprium, an alternative asset manager specialising in operational real estate with €3.7 billion in equity under management. Proprium forms part of L&G’s Asset Management business, which manages €1.3 trillion across public and private markets.

The two Milan properties are operated by Collegiate, a leading PBSA developer and manager with experience delivering and managing more than 22,000 beds across over 50 schemes in the UK and continental Europe. Together, the assets offer nearly 1,200 beds and sit at the premium end of the market, competing directly with Milan’s highest‑quality private rental accommodation.

Benjamin Walter, head of alternative living properties at Aareal Bank, said: “We are delighted to establish a new client relationship with Proprium through this transaction. PBSA remains an attractive asset class, supported by strong structural demand and a continued shortage of high‑quality student accommodation in key European cities.”

Lorenzo Marcone, principal at Proprium capital partners, added: “Aareal Bank’s deep commercial real estate financing expertise and clear understanding of local markets made them a valuable partner for the refinancing of this portfolio. The tailored financing solution supports a portfolio of well‑positioned assets in one of Europe’s key student markets.”

Chiomenti provided legal advice, and JLL acted as valuation advisor for both assets.