Invel Real Estate enters Italian PBSA market

Invel Real Estate has made an initial investment of €18 mln to support Stonehill International Group in developing two PBSA projects in Milan and Padua, Italy.

PBSA Padua - Invel Real Estate

This initial investment is the first step in a new partnership between Invel and Stonehill, and it will fund the creation of approximately 1,100 student beds. These developments are strategically located next to major university campuses: one on Via Lambruschini in Milan's Bovisa district and the other on Via Valeri in Padua. Both projects aim to achieve LEED Gold certification upon completion, demonstrating the partners' commitment to sustainable and high-quality development.

This transaction signifies Invel's entry into Italy's PBSA sector, which is one of Europe's most undersupplied real estate segments. Italy has around 2 million university students, yet purpose-built student accommodation penetration is less than 5% nationwide, a stark contrast to the 20-30% seen in more mature European markets. In Milan and Padua specifically, the demand for PBSA beds is estimated to be three to four times greater than the current supply, driven by strong enrollment growth and an increasing number of international students.

This investment provides Invel with a crucial entry point into two attractive development sites and strengthens the firm's focus on alternative living sectors in key Italian cities. Stonehill, which has been active in Italy since 2017, has a strong track record of developing and selling PBSA assets to institutional investors, having completed approximately 2,100 beds in Europe to date.

Gabriele Magotti, CIO, Invel Real Estate, said: “This transaction marks an important step as we continue to expand our platform across the living sector, where we see some of the most compelling structural opportunities today. The imbalance between supply and demand for modern, purpose-built student accommodation remains a defining theme in European real estate, and Italy, with its vast student population, rising international enrolment and chronically undersupplied market, stands out as particularly attractive. We are pleased to partner with Stonehill, a developer with deep sector expertise and a strong delivery track record in Italy, to support the development of these two assets in Milan and Padua. We look forward to working together as both projects progress through their development phases.”

Matthew Cartisser, CEO, Stonehill International Group, said: “We are very satisfied to have secured the financial support of Invel to assist with the rollout of our Italian PBSA development programme. The Milan and Padua projects will be amongst the best located student residences in two of Italy’s leading university cities. We have been very pleased to work with Invel so far and, in particular, their Milan-based team, which brings with it impressive depth and experience in the Italian real estate market.”