Residential abroad

Affordable housing, Planet Smart City and Palladium USA sell a project in Texas

The companies announce the sale to a US institutional investor of a 324-unit build-to-rent residential complex with an Irr of over 30 per cent

by Laura Cavestri

19 July 2024

3' min read

Key points

The complex
Other projects

3' min read

Planet Smart City and Palladium USA (the company of Palladium Italy that has been operating in the United States since 1992) have finalised the contract for the sale to a US institutional investor of a 324-unit residential complex for rental purposes located in Little Elm (Dallas, Texas).

The complex

The complex, built by the two companies in equal partnership, was the first smart affordable housing project realised in the US according to the Planet Smart City model that integrates innovative solutions in four areas: environment; planning and architecture; technological systems; and social inclusion.

Some thirty smart solutions are included in the model. These include the innovation hub, coworking spaces, gymnasium, shared kitchen, object library, bike sharing & bike reparing, energy saving solutions (smart lighting and optimisation of irrigation systems), smart lockers and smart locks accessible via Planet Smart City's proprietary digital platform.

Constructed in 28 months (between 2021 and 2023), the complex was developed on an area of 46 thousand square metres with a residential area of 26 thousand square metres. The uniqueness of the offer met with the market's favour: three months after the completion of the work, more than 90 per cent of the dwellings were rented out. After a further six months, the asset was sold to an institutional investor, achieving an internal rate of return (Irr) of over 30 per cent.

The success of the operation and the opportunities offered by the Texan market, which is expected to grow also due to a positive demographic dynamic, are leading Planet Smart City and Palladium USA to evaluate other projects, to be realised also with the participation of third parties.

Other projects

Little Elm is one of eleven large smart affordable housing projects that Planet Smart City has completed, or is in the process of completing, in Brazil six projects, in different areas of the country, for about 5 thousand dwellings and India three projects in Pune, in the western state of Maharashtra, for about 4 thousand dwellings in partnership with the Indian company Kolte Patil Developers, one of the country's largest real estate developers.

The Planet Smart City smart affordable development model has been adopted in Italy by leading real estate developers within their projects. One of these is 'Quartiere Giardino', a residential district owned by Palladium in Cesano Boscone (Milan), which has been revitalised by integrating smart architectural, digital, environmental and social solutions by Planet. Planet Smart City is an advisor in 13 projects for the construction of new neighbourhoods or the redevelopment of urban areas or districts through innovative solutions.

"The operation of Little Elm," said Gianni Savio, CEO of Planet Smart City, "confirms the validity of the business model we are implementing in areas with a high housing deficit. The attention of institutional investors and the reception of the residential market indicate that the potential of the smart affordable segment is very high and also strongly appreciated in very different geographical areas".

"The collaboration with Planet Smart City for the development of Little Elm," added Thomas E. Huth, president and ceo of Palladium USA, "has brought new creativity through the application of smart solutions realised through their proprietary digital platform. These new smart solutions have been very well received by the residents. We look forward to continuing our relationship with Planet Smart City in the future through new multifamily real estate development activities.

Laura CavestriRedattrice di Economia
- @LauraCavestri
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Luogo: Milano
Lingue parlate: Inglese e tedesco
Argomenti: Commercio internazionale, Ue, marchi e brevetti, Real Estate
Premi: L'Attendibile 2018 (Il premio di Assolatte)
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