UniCredit funds new living projects in Milan and Rome

Italian bank UniCredit is providing funding for real estate development in Milan and Rome, specifically targeting student and flex-living accommodations.

Rome, Italy

Allegria Developments and the Bongiorno family have launched "New Living," an investment platform focused on Italy's living sector, backed by a major international institutional investor and Azimut Infrastructures & Real Assets. This initiative addresses the substantial unmet demand for student housing and young professional living spaces in Italy, which lags behind other European countries despite rapid growth.

Currently, the New Living platform has secured around €50 mln in capital from partners and private investors, supplemented by an additional €50 mln in senior bank financing. The development strategy outlines approximately 1,000 beds across three projects, with locations in Milan (Certosa and Corvetto) and Rome (Tor Vergata), all slated to open in 2027.

UniCredit's contribution amounts to €30.5 million, specifically financing the Milan Certosa and Rome projects. This financing was channeled through a new SICAF (an investment company with fixed capital) managed by Savills IM, to which the two developing assets were transferred.

New Living is also strategically partnered with Habyt, a global leader in hybrid living solutions managing 10,000 units. These new developments are urban regeneration projects situated in key university areas. They are designed to achieve LEED Gold certification and will offer a comprehensive suite of high-end amenities, including a shared reception, spa, gym, lounge, study rooms, cinema, communal kitchen, and, in some instances, integrated retail spaces.

Leonardo Bongiorno, founder and CEO of Allegria Developments, stated: "The launch of the New Living platform, together with the support and trust of leading institutional investors, will enable Allegria to launch new projects in Italy's main university cities, responding to the growing demand for hybrid housing solutions. New Living's goal is to create a national portfolio that can generate attractive returns for our investors while also having a positive impact on the market by creating modern accommodations dedicated to both university students and young professionals."

Roberto Fiorini, UniCredit's regional manager for Central Italy, added: “With this loan, we reaffirm UniCredit's commitment to serving as a partner of choice for businesses interested in developing concrete and sustainable investment plans in the construction sector."