Invesco Real Estate has provided its first-ever real estate loan in Italy.
The €30m facility has been delivered through a new direct lending fund established by Kryalos SGR with the fund entirely subscribed by vehicles attributable to Invesco Real Estate. The sponsor is a primary Italian SGR.
The loan is being used for the acquisition of land and subsequent development of a new cold storage facility located in the Port of Trieste. The asset will have a GLA of 24,000m2, six temperature-controlled cells (able to cool down to -28 °C), and 18 loading bays with direct access to road and port infrastructure. It is targeting LEED Gold certification.
Paolo Bottelli, CEO of Kryalos SGR, said: “With the launch of this new Italian loan fund, our company has taken a significant step forward into the real estate direct lending sector, which is rapidly growing in Italy as an alternative to bank financing. Such vehicles are becoming prevalent given the greater flexibility of the structures and the reduced time needed to access credit. We’re delighted to be working with Invesco Real Estate to bring this new fund to market. In the current environment, with high rates and restricted credit, we are seeing growing demand from investors on the financing front, with Kryalos SGR focused on disciplined asset selection as a means to deliver an enhanced service for our investors."
Andrew Gordon, Managing Director, Head of European Real Estate Debt at Invesco Real Estate, commented: “Invesco Real Estate is proud of our expansion into the Italian market, a significant milestone for our real estate debt team. This move builds on our already well-established equity footprint in Italy. We are thrilled to partner with Kryalos SGR and anticipate capitalising on future opportunities in Italy. The trend towards alternative lenders makes this an opportune time for our first debt deal, which benefits from both our strong capabilities in structuring the debt for our sponsor as well as our deep understanding of the underlying real estate thanks to our existing local presence. This initiative sees our portfolio of income-producing loans on high-quality assets for first-class sponsors grow and diversify, and is a testament to our commitment to providing diverse and robust investment opportunities for our clients.”
Image source - Pexels.
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