Concrete Investing platform sets new record for property equity crowdfunding

Italian_Crowdfunding_Real_Estate

On the Concrete Investing platform, the Milanese Colonne di San Lorenzo – Gate Central venture managed to raise an incredible $2.8M (€2.5M) sum. Last May 15th the set, which was also available to retail investors, was released and closed after only two weeks. Concrete Investment has raised over $11.2 million ( €10 million) in funding for seven ventures with the completion of this venture.

New mark for Crowdfunding site for real estate equity Concrete Investing

New record for Italy’s property crowdfunding site Concrete Investing, raising $2.8M (€2.5M) for the Milan-based Colonne di San Lorenzo – Gate Central venture. Around 190 investors funded the initiative in only a couple of weeks, with a median ticket amounting to $14,5K (€13K). Due to that, the initiative hit the max funding goal, with overfunding of 167 percent compared to the $1.68M (€1.5M) min. objective. The financing was launched on the previous May 15th and closed in only two weeks, while it was open to retail investors, too. The estimated yearly return rate (IRR) is more than 13 percent and there are also set investor rights provisions.

The newly-financed property venture will be located in Corso di Porta Ticinese 32

Sponsor of the activity in the Colonne di San Lorenzo zone is Building Spa, a firm established in Turin in 1983, focused in lux properties and innovation, not just in the country, but around the globe, too. Building has ventures in China and Russia, while in Turin it has positioned itself for some operations to protect historically valuable infrastructure and transform them into luxury contemporary properties, open and connected with the city and its vibe.

On the other side, Gate Central’s architectural venture is being managed by Citterio-Viel & Partners, an architecture and design company known as one of Italy’s most significant businesses in the field. Through an international portfolio, the firm specializes in designing big public and private ventures.

The newly financed property project is going to be situated at Corso di Porta Ticinese 32, near to one of the Milanese Roman landmarks, the Colonne di San Lorenzo. There will be 6 levels of the structure: a couple under the ground, and 4 above. The ground floor and the 1st underground one will have commercial usage, the 2nd basement will be a garage, while fourteen residential units of varying sizes will be built on the other floors.

The building’s façade has been created to match the surroundings, while the residential units, split into three studio apartments, five two-room apartments, five three-room apartments and one penthouse, will have quality materials, state-of-the-art gen-systems and high-quality finishing touches inside. The building will be marked with efficiency, architecture, tech, creativity and sustainability as well as reverence for its historical environment. The reclamation works will be finished by September 2020, after which construction activities will begin and they are expected to be completed in the first half of 2022.

Concrete Investing chief executive officer Lorenzo Pedotti stated that in a complex national and global sense, this collection’s performance reinforces the value of their approach that has always concentrated on first-rate real estate transfers proposed by highly experienced and solid investors, with appropriate mechanisms to open up to the marketplace. Such vast participation is proof that the attention they pay to the terms reserved for investors, and generally to the frameworks of the financial produce they offer, is of great interest to both skilled and institutional investors, particularly in a period of volatility like the one from which we are slowly exiting. These things will be reinforced in the following ventures that they are already involved in and will be presenting in the following times.

Piero Boffa, founder and president of Building Spa, fruther stated that Gate Central is the first significant step of the Group’s wider Milanese investment, aimed at giving the city a positive alert and further promoting its restart by establishing their concept of lux lifestyle. A signal gotten in a distinctly favorable way, taking into account the publicity that the project instantly attracted. Crowdfunding is now a consolidated global phenomenon and they believe it was important, since it gave a chance to non-institutional investors to play a part and this was a great promo tool for the venture.

Concrete Investing’s additional ventures

Concrete Investing managed to raise over €10M for seven ventures with the conclusion of this venture. Last year it raised more than $1.68M (€1.5M) in November 2019 for the Milanese Terminal Tower, San Cristoforo; $1.12M (€1M) in September last year for Le Dimore di via Arena in Bergamo Alta, as part of the collaboration with Immobiliare Percassi; $1.68M (€1.5M) for the Milanese ELLE Building in July 2019, the first campaign in a series as part of a special collab with the Borgosesia group; $1.12M (one million euros) aimed for the Gracchi7 venture in March last year in the same city.

The group managed to raise 2.8M USD (2.5M EUR) in one day in February 2019 for the construction of the Bluestone property venture in Milan which earned more than 150 adhesions. Nevertheless, as this operation’s overall financing was set at $2.24M (two million euros), Concrete Investing was in the position to accept much of the adhesions and recover the excessive funding. This is a record pooling of funds in Milan for the crowdfunding market, both in terms of collection speed and the volume of cash.

Concrete Investment also made its first exit in January 2019: after a year, investors in the Torre Milano venture done by OPM were remunerated with a profit of 11.86 percent. At the end of 2018, Torre Milano was the first initiative Concrete Investing launched. The campaign concluded with the completion of the $840K (€750K) max donation goal as part of Impresa Rusconi’s exclusive partnership.