New Real Estate Equity Crowdfunding Portal Yeldo Crowd Was Launched

Yeldo is a real estate developer based in Germany with offices in Lugano and Milan that has about half a billion euros in financed projects to its credit since 2018 in Switzerland, Italy, and Germany. The company has launched Yeldo Crowd, a new real estate equity crowdfunding platform authorized by Consob and managed through its subsidiary Y-Crowd srl.

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Yeldo Crowd is extending to “affluent” retail the opportunities offered to professional investors

The platform replicates what Yeldo has done so far for its professional investors who invest with Yeldo from a minimum of €125,000 and has repaid six projects for an average net return (Irr) of 14.7 percent.

The goal of the crowdfunding portal is to enable retail investors to invest in real estate projects, although the entry fee remains quite high: €10,000.

Yeldo Crowd was created, therefore, to extend Yeldo’s offerings to retail investors while maintaining the same approach to investment in terms of collateral, preferential repayment terms, and benefiting from the experience of a real estate team, led by Chief Investment Officer Lorenzo Belloni and supported by an advisory board composed of industry experts. Belloni has a background at Morgan Stanley Real Estate Investments and Angelo Gordon Real Estate Investments.

“With Yeldo Crowd we are taking one more step towards our mission of democratizing institutional real estate investment,” explained Antonio Borgonovo, CEO of the Yeldo Group, “by reducing the minimum investment ticket to €10,000 but keeping our principles firm: great attention to the selection and due diligence of projects, search for mechanisms of capital protection and return for our investors, but above all ease of underwriting and information transparency, through technology.”

The first campaign on Yeldo Crowd

The first campaign launched on Yeldo Crowd, which complements the bank financing already provided by a leading Italian institution has a minimum goal of raising €2 million and a maximum goal of €3 million and to date has raised €1.22 million.

The funds will be used to redevelop a residential complex located at Via Chiusi 5 in Florence, which was built in 1980 by the Italian Postal Service Group and is now owned by Bluecap srl, a subsidiary of AD Casa srl, equity sponsor of the deal, a real estate developer with more than 15 years of activity in Tuscany and Florence.

The project involves the complete renovation of the complex and the fractional sale of 85 apartments and includes energy efficiency upgrades, which will bring the property from energy class G to A.

Work started in January 2022 and today 75% of the work has been completed with 52% of the housing units pre-sold.

Construction is scheduled to be completed in September 2023 and the expected life of the investment is about 18 months, with an expected Roi of 18.6%, equivalent to an expected Irr of 12.0%.

As often expected in real estate equity crowdfunding campaigns, investors of benefit from a liquidation preference of both the invested capital and the return over the equity sponsor.

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(Featured image by borevina via Pixabay)

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