CrowdFundMe, an Italian crowdfunding equity portal listed on Aim Italia since March 2019, has entered the real estate market, launching its first campaign, that of 4F Real Estate. The latter is a real estate development company focused on Milan, Italy, specializing in the purchase and rental of properties for rent or sale, after increasing their value.
The landing of CrowdFundMe in real estate crowdfunding was expected in December 2019. At that time the CEO and founder of the portal Tommaso Baldissera Pacchetti had specified that the entry into real estate would take place in the first quarter this year.
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Annual income for future members
4F Real Estate’s crowdfunding campaign, active until the end of March 2020, has a minimum collection target of $163,839 (€150,000), which it has already exceeded. 4F Real Estate, with a discount valuation of $706,630 (€647,000), offers future members an expected annual income of at least 8%. The capital raised in equity crowdfunding will be used to further develop the core business according to three types of investment.
The first one is the purchase by capitalization: 4F Real Estate is able to acquire real estate at very advantageous conditions and then transform them into profitable investments. Second is Rent to Rent: subleasing. The third one is buying for speculation: buy at a bargain price to resell at the highest possible price.
4F Real Estate boasts a track record of real estate transactions worth about $5,5 million (€5 million) over 5 years and managerial profiles with high skills in the real estate sector, such as the founder Francesco Lionetti, in the past protagonist, on CrowdFundMe, of the successful campaign of the Milanese coworking 02Factory. 4F Real Estate is a partner of 369 Homes for residential properties and 02Factory for commercial properties. It plans to expand its real estate capital every year with a Rent to Rent investment and purchase for sale, mainly in Milan. The objective is to reach, in 2024, the share of 4 properties owned and 4 properties dedicated to Rent to Rent.
Buy to Sell and Rent to Rent operations
Meanwhile 4F Real Estate has already started two important operations: one of the Buy to Sell nature (purchase for sale); 4F Real Estate bought a property in Via Livigno for $450,230 (€412,200), on which it then invested $76,460 (€70,000) for the renovation. This structure generates a solid monthly income with continuous increase: only in the last year, it has invoiced more than $54,610 (€50,000) (Buy to Let). The sale of the building is planned for the future.
The other Rent to Rent (rent and then sublet): after a renovation of $109,219 (€100,000) on a property in Foro Buonaparte, the company managed to sign a lease of $1,092 (€1,000) per month for the first four years and then $2,365 (€2,166) per month until 2029, in one of the most exclusive areas of Milan. This structure, in the last twelve months, has invoiced about $141,985 (€130,000) thanks to short-term rentals.
At the end of October 2019, CrowdFundMe entered the listings sponsor register of ExtraMOT Pro3, the bond segment of Borsa Italiana dedicated to unlisted companies for issues of up to $55 million (€50 million) each. In addition to supporting companies in the issuance of debt securities (primary market), CrowdFundMe will also be able to list them and follow the issuer for the entire duration of the instrument (secondary market). Last December, the Italian crowdfunding portal signed a non-binding letter of intent to define a commercial partnership with Epsion, a London-based company specializing in corporate finance and private debt consulting that in 2019 followed private debt transactions in Europe for $16,4 million (€15 million) as an arranger and global coordinator.
In 2019 CrowdFundMe supported the crowd listing (the collection of funds preparatory to listing on the stock exchange) of the investment company in startups and innovative SMEs Innovative-RFK spa (i-RFK spa), landed on Euronext Access last December 27th. The listing took place at the end of an equity crowdfunding campaign on the CrowdFundMe platform, which raised $2,7 million (€2.5 million) in the same month, equal to 23.5% of the capital. The first CrowdFundMe issuer to be listed on the stock exchange was the leading Italian short-term rental management platform CleanBnB, which landed at Aim Italia in July 2019.
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First published in BeBeez, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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