On Friday, May 22 at 12:00 pm (UTC+2), we will open Project Iris for investment, a new real estate debt opportunity in Italy.
- 📅 Investment opening: Friday, May 22 at 12:00 pm (UTC+2)
- 🎙 Project webinar: Wednesday, April 27 at 12:00 pm (UTC+2)
A premium residential complex in Busto Arsizio
The project consists of granting a senior secured loan to finance the development of Residenza Iris, a newly built residential complex located in the centre of Busto Arsizio, a northern Italian city strategically positioned between Milan and the Swiss border. The development includes the construction of a seven-storey residential building comprising 24 high-end apartments, designed with a contemporary architectural concept and aimed at high-net-worth buyers. The apartments will feature generous living spaces, terraces, private lifts and premium finishes. The project will also include parking spaces, storage units and concierge services.Busto Arsizio: a strategic location in Lombardy
The asset is located on Via Borroni, in the heart of Busto Arsizio, just a few minutes from the railway station and with excellent connections to Milan and Malpensa International Airport. Busto Arsizio combines a strong economic base, quality of life and proximity to some of northern Italy’s main business hubs. Its location makes it an attractive alternative both for local residents and for international profiles and professionals who frequently travel to Milan. The limited supply of newly built homes in prime locations and the growing demand for premium residential product reinforce the commercial appeal of Residenza Iris.The sponsor: Immobiliare Hestia
The project sponsor is Immobiliare Hestia, a Milan-based real estate developer specialising in high-end residential projects in northern Italy. Founded in 2013, the company has experience in the acquisition, refurbishment and development of residential assets in markets characterised by strong demand and limited premium supply. Its founder, Igor Chubarov, brings more than 30 years of international real estate experience and has participated in the development of more than 2 million residential square metres. In Residenza Iris, the sponsor acts both as developer and investor, maintaining direct control over the design, execution and commercialisation of the project.A project with permits granted and construction already underway
Residenza Iris already has all required urban planning permits approved, and construction works have already begun. The sponsor is contributing approximately €4.2 million of total equity to the project, of which €2.8 million had already been invested at closing, reflecting strong alignment of interests. Commercialisation will be led by RE/MAX, supported by an active pre-sales strategy targeting both affluent local buyers and profiles connected to Milan and the international Malpensa area.Transaction structure
The transaction is structured as debt financing through the granting of a senior secured loan to the SPV IRIS S.r.l., the borrowing entity for the transaction. Total financing amounts to €5,000,000, intended to finance part of the construction and development costs of Residenza Iris. Of this amount:- €3,000,000 will be financed by Urbanitae investors.
- €2,000,000 will be provided by external co-investors.
- Amount: up to €3,000,000
- Interest rate: 11.0% annual simple interest
- Total return: 22%
- Term: 24 months
- Possible extension: an additional 12 months
- Principal and interest payment: at maturity
Loan guarantees
The financing includes a package of guarantees comprising:- First-ranking mortgage over the asset.
- Pledge over the SPV’s bank accounts.
- Subordination of shareholder loans.
- Sponsor commitment to contribute additional capital in the event of construction cost overruns.
Exit strategy
The investors’ exit will take place through the sale of the 24 residential units, together with the associated parking spaces and storage units. The project targets a market characterised by strong demand and limited supply of newly built premium residential product, particularly in central and well-connected locations in northern Italy.Why invest in Project Iris
These are some of the project’s key strengths:- Premium newly built residential project in a strategic location in Lombardy.
- Permits granted and construction already underway.
- First-ranking mortgage over the asset.
- Fixed annual return of 11.0% simple interest, with a minimum return equivalent to 12 months of interest.
- Experienced sponsor with an extensive international track record in residential development.
- Sponsor commitment to cover potential cost overruns through additional equity contributions.
Estimated timeline
The estimated project term is 24 months, with the option of a 12-month extension. Main projected milestones:- Q1 2026: commencement of construction works following the granting of all required permits and the execution of the turnkey construction contract.
- Q2 2026: granting of the loan by Urbanitae investors.
- Q2 2028: full completion and notarisation of the residential units and full repayment of principal plus accrued interest to Urbanitae investors.
