ITS Lending’s Real Estate Crowdfunding Disburses €1.6M for 25 Projects

ITS Lending’s real estate lending crowdfunding dedicated to the regeneration of Italian boroughs celebrates its first year of existence with more than €1.6 million raised.

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ITS Lending funded the renovation of 25 properties in villages in 6 regions

The capital raised helped finance the renovation of 25 properties in six regions: Sicily, Sardinia Tuscany, Puglia Emilia Romagna, and Marche. From November 2021 – the portal’s launch month – to date, the interest rate has averaged 9.4 percent (on an annual basis), against an average loan term of 8 months, compared to the market average of 13. ITS Lending also kept its promises to investors on time, repaying as many as 12 loans, plus interest, totaling €532,000.

ITS Lending is a real estate lending crowdfunding portal established in November 2021 that allows anyone to invest in real estate transactions aimed at the redevelopment of buildings located in Italy’s small historic villages.

According to data from our observatory, the real estate lending crowdfunding market in 2022 has proven to be extremely dynamic, with more than 300 projects financed for more than 80 million disbursed, with total inflows increasing by 50 percent compared to 2021.

The recovery of an olive oil mill in Caprarica, Salento, Italy

ITS Lending is thus closing out 2022 on a high note, not only thanks to its results but also with the investment offer, just launched, in its third real estate project in Caprarica di Lecce, Salento. The project involves the renovation of a historic oil mill from the late 19th century to create a private home of about 550 square meters, with a garden of 400.

The deal consists of a 12-month loan aimed at redeveloping the property, offering an interest rate of 12 percent. This is higher than the average rate offered by the platform so far, but also compared to the average real estate lending market, which stands at 9 percent (on an annual basis).

The work, which is expected to be completed by January 2024, will thus breathe new life into a historic building while also contributing to the redevelopment of the entire hamlet. The building has already been optioned by a buyer, and Gepark, the proponent, even if the buyer, for whatever reason, no longer intends to purchase the property, agrees to repay the principal and interest by the maturity date.

For 2023, the platform aims to increase the number of deals by also increasing the average amount of individual collections, which, to date has been around €60,000-€70,000, and does not rule out also launching crowdfunding campaigns to help finance small business activities in the villages targeted by the real estate interventions to stimulate their revitalization in their economic fabric as well.

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(Featured image by 10634669 via Pixabay)

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