Invel Real Estate has entered into an exciting partnership with Stonehill International Group through an initial investment of €18 million. This funding will facilitate the development of two purpose-built student accommodation (PBSA) schemes located in Milan and Padua. These projects will collectively yield approximately 1,100 bedrooms, strategically positioned at Via Lambruschini in Milan’s Bovisa district and Via Valeri in Padua, both conveniently adjacent to prominent university campuses.
The planned developments are set to pursue LEED Gold certification, underscoring the commitment shared by both partners to uphold high sustainability standards in their construction projects. Matthew Cartisser, Chief Executive Officer of Stonehill International Group, expressed enthusiasm about the financial backing from Invel, stating, “We are very satisfied to have secured the financial support of Invel to assist with the rollout of our Italian PBSA development programme. The Milan and Padua projects will be amongst the best located student residences in two of Italy’s leading university cities. We have been very pleased to work with Invel so far and in particular their Milan based team, which brings with it impressive depth and experience in the Italian real estate market.”
The Market Opportunity
This transaction represents Invel’s strategic entry into the Italian PBSA sector, which is recognised as one of the most structurally undersupplied segments across the European real estate landscape. Currently, Italy is home to approximately two million university students, yet the penetration of PBSA remains disappointingly below 5% nationally. This figure starkly contrasts with the 20% to 30% levels seen in more established European markets.
In cities like Milan and Padua, the demand for PBSA beds is projected to outstrip supply by a factor of three to four, driven by strong enrolment growth and an increasing influx of international students. The investment by Invel not only marks a significant milestone for them but provides a solid foundation in two development sites that are deemed strategically appealing.
Stonehill’s Proven Track Record
Stonehill has been active in the Italian market since 2017, boasting a proven history of successfully developing and disposing of PBSA schemes to institutional investors, with around 2,100 beds completed across Europe to date. This partnership with Invel enhances Stonehill’s efforts to expand their portfolio and capitalise on the growing demand for modern student accommodation.
Gabriele Magotti, Chief Investment Officer at Invel Real Estate, commented on the strategic importance of this investment, stating, “This transaction marks an important step as we continue to expand our platform across the living sector, where we see some of the most compelling structural opportunities today. The imbalance between supply and demand for modern PBSA remains a defining theme in European real estate, and Italy, with its vast student population, rising international enrolment, and chronically undersupplied market, stands out as particularly attractive. We are pleased to partner with Stonehill, a developer with deep sector expertise and a strong delivery track record in Italy, to support the development of these two assets in Milan and Padua.”