Rhize Capital enters Italian market with €100m Milan loan

18 January 2024 – London – Rhize Capital (“Rhize”), the leading specialist debt funding platform for European student housing markets, is pleased to announce the completion of a €100m loan facility for two student housing schemes in Milan, Italy.

This marks the first Italian loan for Rhize, a partnership between Kinetic Capital, a specialist lender in the purpose-built student accommodation sector and Kayne Anderson Real Estate, the real estate private equity arm of Kayne Anderson Capital Advisors.

Under the transaction, Rhize will provide financing for two student housing projects being developed by Proprium Capital Partners and their operating partner, Collegiate AC. The two schemes are in the popular student city of Milan, home to 210,000 full-time students, and are both in prime locations with connections to key universities and feature market-leading amenities including swimming pools, gyms, and extensive study spaces, along with strong environmental credentials.

The first property, Collegiate Milan North, opened to student residents at the start of 2023 and provides 695 beds across a mix of studios and club rooms. Located in the Precotto district of Milan, the property is a short walk from the University of Milano-Bicocca and is fully occupied for the current academic year.
The second scheme is a development located in the Bovisa district, in close proximity to two campuses of the Politecnico di Milano. The project is due to deliver 470 beds for the start of the 2025/26 academic year.
The loan includes Rhize’s unique ESG incentives focused on promoting the positive mental health and wellbeing of students and has been made in conjunction with Banca Credito Attivo SpA, part of the Gruppo Bancario IBL Banca.

Despite the high number of students, Milan has one of the lowest provisions of PBSA of any major market in Europe of only 5%, compared to more mature markets where the rate is close to 50%. This trend is reflected across Italy more widely, which remains a country of focus for Rhize.

Steve Grant, Chief Executive Officer, Kinetic Capital, said: “We are pleased to have completed Rhize’s first Italian facility and delighted to start a new relationship with Proprium Capital Partners. This is testament to Rhize’s deep sector expertise, strong relationships and ability to provide innovative financing solutions for PBSA borrowers.

These two market leading schemes will play a critical role in expanding the provision of student housing in the city, providing us with exposure to one of the most attractive markets in Europe. This transaction provides a blueprint for further activity in Italy, which is a key focus for Rhize, as demand for quality student housing continues to outstrip supply.”

David Selznick, Chief Investment Officer, Kayne Anderson Real Estate, said: “This project is a great opportunity to provide liquidity in the European PBSA sector located in a very attractive market to a top tier sponsor, and we look forward to expanding our business across other high demand markets across Europe and the UK.”

Javier Perez-Lecumberri, Partner, Proprium Capital Partners, said: “We are delighted to partner with Rhize on this transaction. In the context of a challenging lending environment, they were able to provide a tailored financing solution for our projects. Their continued support will be important as we look to increase our platform.”