Castello SGR and Invel Real Estate secure €65m in green financing

Castello SGR and Invel Real Estate have secured €65 mln in green financing from Italian bank UniCredit.

Yellow Square Florence - Invel Real Estate

This funding is specifically for the Yellow Alternative Investment fund, managed by Castello SGR and fully supported by Invel Real Estate.

It will enable the acquisition and repositioning of approximately 2,000 new beds in major Italian gateway cities for YellowSquare, an Italian hybrid hospitality operator and Invel Real Estate's operating partner. This move is part of a strategic joint venture formed between Invel and YellowSquare in January 2025, which aims to expand YellowSquare's offerings. Currently, YellowSquare manages around 1,200 beds, and this new financing will bolster its growth and market position.

The expanded YellowSquare platform will focus on innovative design and communal spaces to encourage social interaction among guests. The financing from UniCredit is expected to be certified as a "green loan," highlighting the project's strong commitment to environmental sustainability and adherence to modern ESG standards through high-value construction solutions.

CBRE acted as a debt advisor for Castello SGR and Invel Real Estate.

Michelangelo Ripamonti, head of Investment Hospitality at Castello SGR, commented: "We welcome this financing to support the growth of the Yellow Fund, which strengthens our development strategy in the rapidly growing segment of hybrid hospitality."

Gabriele Magotti, Chief Investment Officer, Invel Real Estate, stated: “We are pleased to partner with UniCredit for this next phase of growth in Italy, which also reinforces the broader strategic trajectory of the platform across key Southern European urban markets. Beyond the size of the transaction, it reflects the strength of the joint venture established in 2025 and our shared conviction in the long-term potential of hybrid hospitality as an institutional asset class.”

Silvia Gandellini, head of Capital Markets Italy at CBRE, added: "This transaction reflects the dynamism of the debt market for conversion projects and confirms CBRE's role as a go-to partner for complex transactions."