The Italian real estate development company Barletta Group has issued a 120-million-euros so-called property development bond with a 42-month maturity, which was subscribed by Cain International, a real estate investor in Europe and the US (see the press release here) .
Property development bonds are a financing method typical of real estate developers, to finance the launch of their projects together with the equity share.
The loan will support the expansion of the Soho House and Rosewood Hotels brands in Italy, through the opening of two hotels in Rome and Venice, both under construction by a Barletta Group contractor, who owns the two properties.
In detail, in Rome Soho House will develop a structure of 32 rooms and 40 apartments in the San Lorenzo district, which will also house 2 restaurants and a spa. The completion of the works is scheduled for 2020. In Venice, Palazzo Donà Giovannelli, a 14th century residential building located in the Cannaregio district, will be converted into a hotel, designed in 1847-1848 by Filippo Calendario, architect of the Palazzo Ducale in Venice. It will be transformed into a 5-stars hotel with 46 bedrooms and managed by the Rosewood Hotels Group. The completion of the works is scheduled for the end of 2021. It will be the second Rosewood hotel in Italy, in addition to that of Castiglion del Bosco, in the province of Siena.
Matteo Milan, principal in real estate finance at Cain International, who led the deal, commented: “We are excited to have completed our first transaction in continental Europe, collaborating with the Barletta Group. This transaction is a natural step forward for Cain International, as we expand our debt platform in continental Europe and highlight our willingness to provide development financing to strong partners in the gateway cities “.
Paolo Barletta, ceo of the Barletta Group, said: “Hospitality is one of the fastest growing sectors in the sector and Soho House and Rosewood Hotels, both world leaders in the luxury hospitality sector, have already laid the foundations for success in the Italian market Working with the best operators in the sector, our goal is to strengthen our group in the luxury and lifestyle segments of this fast growing market, but to achieve this goal, it is essential to build strong relationships with the international financiers, as the propensity of Italian banks to finance development is limited. Cain International’s debt platform has an impressive track record and we are pleased to work with them to ensure this important financing “.
The Barletta Group is one of the leading Italian real estate development companies. With over 60 years of experience, it has developed more than one million square meters of property throughout Italy. The three main business areas of the group are residential, retail and hotel, the latter through the direct and indirect management of four and five-star locations.
Paolo Barletta also operates in the venture capital sector through a dedicated investment vehicle, Alchimia. Headquartered in Rome, Milan and London, it was founded in 2018 by Mr. Barletta together with Alessio Vinciguerra and Lorenzo Castelli. Alchimia has already invested over 40 million euros and today has a portfolio of 16 holdings: Chiara Ferragni Collection, WeRoad, Quiqup, Aornet, Zebra Fuel, Storelli, uBiome, CUE, SPARK Neuro, Texel, Don’t Cry, Leone Film Group and Qurami, through its subsidiary uFirst (see here a previous post by BeBeez). Alchimia is the only Italian investor in Virgin Hyperloop One, the magnetic gravity train project.