Rhize Capital enters Italian market with €100m Milan PBSA loan

Rhize has made its first Italian loan for two student housing schemes in Milan, which are being developed by Proprium Capital Partners.

Rhize Capital will deliver the Collegiate Milan North alongside another PBSA scheme in Milan with operating partner Collegiate AC | PBSA News
Rhize Capital will deliver the Collegiate Milan North alongside another PBSA scheme in Milan with operating partner Collegiate AC.

Specialist debt funding platform for European student housing markets – Rhize Capital – has completed a €100m loan facility for two student housing schemes in Milan, Italy. 

This marks the first Italian loan for Rhize, a partnership between specialist lender in the purpose-built student accommodation (PBSA) sector Kinetic Capital and the real estate private equity arm of Kayne Anderson Capital Advisors, Kayne Anderson Real Estate.

Under the transaction, Rhize will provide financing for two student housing projects being developed by Proprium Capital Partners and its operating partner, Collegiate AC. The two schemes are in the popular student city of Milan, which is home to 210,000 full-time students.

The PBSA development at Bovisa | Rhize Capital | Collegiate | PBSA News
The PBSA development at Bovisa.

“We are pleased to have completed Rhize’s first Italian facility and delighted to start a new relationship with Proprium Capital Partners. This is testament to Rhize’s deep sector expertise, strong relationships, and ability to provide innovative financing solutions for PBSA borrowers.

“These two market leading schemes will play a critical role in expanding the provision of student housing in the city, providing us with exposure to one of the most attractive markets in Europe. This transaction provides a blueprint for further activity in Italy, which is a key focus for Rhize, as demand for quality student housing continues to outstrip supply.”

Steve Grant, Chief Executive Officer, Kinetic Capital

Both developments are located in prime areas with good connections to key universities. Residential amenities include swimming pools, gyms, and extensive study spaces.

Interior at one of the schemes | Rhize Capital | Collegiate | PBSA News
Interior at one of the schemes.

The first PBSA scheme – Collegiate Milan North – opened to residents at the start of 2023. The scheme includes 695 beds across a mix of studios and club rooms. Situated in the Precotto district of Milan, the development is a short walk from the University of Milano-Bicocca and is fully occupied for the current academic year.

“We are delighted to partner with Rhize on this transaction. In the context of a challenging lending environment, they were able to provide a tailored financing solution for our projects. Their continued support will be important as we look to increase our platform.”

Javier Perez-Lecumberri, Partner, Proprium Capital Partners
Swimming pool at one of the schemes | Rhize Capital | Collegiate | PBSA News
Swimming pool at one of the schemes.

The second scheme is a development located in the Bovisa district, near two campuses of the Politecnico di Milano. The development is due to deliver 470 beds for the start of the 2025/26 academic year.

“This project is a great opportunity to provide liquidity in the European PBSA sector located in a very attractive market to a top tier sponsor, and we look forward to expanding our business across other high demand markets across Europe and the UK.”

David Selznick, Chief Investment Officer, Kayne Anderson Real Estate
Courtyard at one of the schemes | Rhize Capital | Collegiate | PBSA News
Courtyard at one of the schemes.

The loan includes Rhize’s ESG incentives focused on promoting the positive mental health and wellbeing of students – and has been made in conjunction with Banca Credito Attivo SpA, part of the Gruppo Bancario IBL Banca. Despite the high number of students, Milan has one of the lowest provisions of PBSA – 5% – of any major market in Europe compared to more mature markets where the rate is close to 50%.