The real estate campaign, launched last May with a minimum target of $2.35 million (€2 million), ended with a collection of over $3 million (€2.6 million) thanks to more than 200 investors. On average, they invested about $15,000 (€13,000) each. This is the third-largest crowdfunding campaign ever for a real estate project, after Washington Building (Concrete Investing) and Firenze Settignano (Walliance), which had exceeded both $3,5 million (€3 million).
Read more about the first real estate crowdfunding project that raised over $3 million (€2.6 million) on Mamacrowd and find the latest business news with the Born2Invest mobile app.
The objective of the crowdfunding campaign is a green real estate project
The campaign had as its object a real estate development project, called G311 – Green living, related to an area located in Milan via Gallarate 311. The project is focused on the construction of 71 apartments, including garages and cellars with an extremely competitive price/quality ratio, equipped with large green condominium spaces, redeveloped as “Forest Garden”, and private such as balconies and terraces.
The initiative is developed by G311 srl, a vehicle set up for the operation and composed of qualified operators in the real estate sector of the Milanese panorama, who actively participate with a total equity investment of $1.88 million (€1.6 million). The main promoter of the project is the Milanese company Vitofin, which has been operating successfully since 1980 in the field of real estate development and management.
G311 – Green living is certified by Bureau Veritas Nexta, Bureau Veritas Group, a French company on the market for 190 years, a reference leader in audits and controls to ensure quality and reliability in real estate and infrastructure projects. The marketing is entrusted to IAD Group, the largest network of independent real estate agents in France with over 6000 consultants, since 2018 also in Italy.
For Mamacrowd’s investors, the minimum investment ticket was $587 (€500), against an estimated duration of the operation of 30 months. The estimated return for subscribers of B units (investments from $117,000 (€100,000) is 33.28% gross, and for subscribers of C units (investments between $587 (€500) and $117.000 (€100,000) is 25.81% gross. This return will be generated by the sale of the units.
The “pitch” of the campaign stated that “the total cost for the realization of the project is equal to €19,234,000 financed for a total countervalue of $1.88 million (€1.6 million) by equity of the Promoting Shareholders of G311 Srl, for $5.16 million (€4.4 million) through Equity Crowdfunding, up to $11.73 million (€10 million) of bank leverage in addition to $3.76 million (€3.2 million) as advances on the preliminaries stipulated during the third and fourth quarter 2020.”
The real estate crowdfunding sector in Italy
Thanks to this operation, there are now 14 equity crowdfunding campaigns closed successfully this year in Italy (there were 15 in all 2019), for a total collection of $24.2 million (€ 20.6 million $19.4 million (€16.5 million in all 2019).
To these results, the $28.5 million (€24.3 million) raised through real estate lending crowdfunding (113 projects financed) must be added, which brings the entire “crowd” brick sector to a collection of almost $52.8 million (€45 million), with 127 projects funded.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Crowdfunding buzz, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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