Crowdfunding Campaign for Savonarola Palace Raised €1.4 Million on Recrowd

Savonarola Palace, a historic palace in Florence erected to a design by architect Enrico Guidotti during the years of Florence Capital, is being reborn to new life thanks to a lending crowdfunding campaign on the Recrowd platform.

Thanks to 375 investors, the project raised €1.4 million in just six days, with the underwriting of a 14-month loan for a total gross return on investment between 11.67 percent and 16.33 percent, depending on the size of the investment.

This was a bridge loan, the repayment of which to investors, however, is not conditional on the closing of the entire construction site and the sale of all apartments.

The size of the collection, while not the highest among those achieved by projects presented on Recrowd, is certainly the most substantial crowdfunding campaign in Italy for a renovation operation of a historic and protected building.

Read more on the subject and find other important financial news of the day with theBorn2Invest mobile app

The Savonarola Palace

Built on a plot of land purchased in the years of Florence Capital by the same architect Enrico Guidotti who designed it, Savonarola Palace was built with a masonry and stone structure, has an “L” plan development with the vertex looking at the square of the same name, and is characterized by a large basement floor that runs the entire perimeter, as well as three levels above ground.

After several changes of ownership̀, it became a schoolhouse in 1970, resulting in the adaptation and reconfiguration of the interior spaces.

The first floor has large reception halls, used until a few years ago as university classrooms, a library, and a large room equipped for conferences. Originally this hall was used by the Sisters of Never (owners of the complex) as the institute’s internal church.

On the ceilings are rich frescoes with various subjects, painted by minor Tuscan artists of the 19th century, while the corridor on the first floor features “grotesque” depictions in the vaults.

The project

The project includes a change of use of the property, to make it residential, and the subsequent fractionation into 9 residential units, including 4 on the ground floor, 3 on the second floor, and 2 on the second floor.

But the project also includes respecting the historical constraints of the building, which therefore includes the conservative restoration of the cultural assets surveyed within it and a fractionation that is as minimally invasive as possible, so as to keep the frescoes inside unaltered and green its value.

Finally, a terrace overlooking Frà Girolamo Savonarola Square will be built.

A real estate developer with 25 years of experience will work on the Savonarola Palace

Palazzini Corporate S.r.l., a family-owned company founded by Massimo and Arianna Palazzini, boasts 25 years of know-how in the construction and real estate sector, thanks to operations developed not only in Tuscany but also in Brazil, Argentina, and Croatia.

It also has experience in commercial construction with the renovation and preparation, as a general contractor, of Despar brand supermarkets in central Italy.

The company’s proposition and experience are based on the new concepts of energy independence and optimization of power systems, as well as the use of high-quality materials to ensure durable performance, such as is required for the renovation of a historic building such as Savonarola Palace.

Recrowd is Italy’s largest real estate lending crowdfunding platform, offering real estate projects with an excellent risk/return ratio

One of the advantages for investors is the possibility to participate in the collection with low capital, in fact, it starts from only €500.

Once the project is finished, and therefore interest accrues, it can be increased by taking advantage of the so-called “compound interest” (read more here).

The platform was founded by Gianluca De Simone, Massimo Traversi, and Simone Putignano and was launched in 2019. In August of that year, Recrowd raised €418.880 through an equity crowdfunding platform.

To date, according to data from Crowdfunding Buzz, it has raised more than €86 million since its launch, establishing itself as the largest Italian real estate lending crowdfunding portal in terms of funding.

__

(Featured image by BiljaST via Pixabay)

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 aqui!, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.