Yeldo Crowd Raises €2.5 Million for Affordable Housing Project in Monza

Yeldo Crowd, a platform specializing in raising capital for institutional-grade real estate transactions and part of the Yeldo Group, has successfully closed the equity crowdfunding campaign for Monza, Via della Blandoria, the fourth transaction since the portal was launched in March 2023.

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The operation closed on October 28th, just days before Yeldo Crowd also obtained authorization under the new European regulation

The real estate crowdfunding initiative was a great success, reaching the minimum fundraising goal of €1.5 million in just a few hours, and raising – just two days after the launch – the maximum goal of €2.5 million, with an overfunding of 166.7 percent.

The funds raised will be used to finance a housing project, which involves the construction and sale of a residential complex in Monza, with a total of 55 housing units and 92 parking spaces.

The operation, with a strong social vocation, is part of the subsidized housing scheme, the aim of which is to make the purchase of a first home accessible to more income brackets. It also benefits the project’s investors: in fact, the sale of the housing units will take place at subsidized prices, significantly helping to mitigate commercial risk.

Marco Dardana, CEO of Yeldo Crowd, commented, “With rising real estate prices in Milan, demand for residential units in Monza has grown rapidly, offering attractive terms for investors. The project in Via della Blandoria, sold at reduced prices thanks to the agreement signed with the municipality of Monza, is, therefore, an ideal choice for young couples, families, and professionals working in Milan, offering an environment surrounded by greenery, well connected with the center of Milan reachable in just 10 minutes by train.”

The details of the operation

The project involves the construction of two buildings with a total area of 5,671 square meters, in the immediate vicinity of Monza Park, which will house a total of 55 residential units offering housing solutions of various sizes, from 45 to 140 square meters. Excavation is scheduled to start in November 2023, construction work to begin by January 2024, and completion is expected by the end of 2025.

The project has an ROI of 47 percent, equivalent to an expected annual return (IRR) of 15 percent, against an expected duration of 33 months. The sponsor of the transaction is Gruppo MG, a renowned Italian developer with extensive experience in urban regeneration and real estate development projects, with more than 55 years of experience in the sector, more than 500,000sqm of active projects, and an operation, in Varedo, already successfully financed by Yeldo, for a total amount of €5 million.

Commented Lorenzo Belloni, Chief Investment Officer of Yeldo Group: “In this transaction, too, we have built a solid package of guarantees for investors: in addition to the liquidation preference, which offers a priority of liquidation on capital yield over the Sponsor’s equity, there is also a put option, which will allow investors to sell their shares to the Sponsor at the end of the expected term if capital and yield have not yet been repaid.”

Yeldo Crowd and the Yeldo Group

The Monza, Via della Blandoria operation is the fourth successfully financed by Yeldo Crowd. Since its launch in March 2023, the portal has raised just under €9 million, involving more than 250 professional and retail investors.

Yeldo Crowd’s mission is aligned with that of the Yeldo Group and aims to build institutional-grade real estate investment products that reflect the risk-return characteristics typically sought by professional traders, with a focus on safeguards, guarantee instruments, and capital and yield protection mechanisms.

Yeldo is a European group established in 2019 with offices in Switzerland, Italy, and Germany. Through investment solutions dedicated to qualified and professional investors, the company offers direct and digital access to institutional-grade real estate transactions in Europe and Switzerland.

The company specializes in real estate transactions up to €100 million in size and requires a co-investment share of Yeldo investors of up to €15 million.

To date, YELDO has financed different types of asset classes in Europe and Switzerland (CORE, CORE+, Value Add, Opportunistic) by offering professional investment structures (Luxembourg RAIFs, certificates, and securitizations) to its investors.

In March 2023 Yeldo launched Yeldo Crowd, an Italian real estate crowdfunding platform now authorized to operate in the equity and debt crowdfunding markets under the new EU regulation. Yeldo Crowd offers direct access to institutional-grade real estate investments and also to non-professional investors.

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(Featured image by AlexanderStein via Pixabay)

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