Invel enters the student accommodation market in Italia: an investment of €18 million in Milan and Padua

Invel Real Estate is entering the Italian student accommodation market with an initial investment of €18 million earmarked for two development projects led by Stonehill International Group in Milan and Padua. The transaction marks the first step in a strategic partnership between the two companies and supports the creation of approximately 1,100 beds in total across two locations considered particularly attractive from an academic perspective: Via Lambruschini, in Milan’s Bovisa district, and Via Valeri in Padua. Both projects will be located near academic hubs.

The investment marks Invel’s entry into the Purpose-Built Student Accommodation (PBSA) sector, one of the most dynamic segments of the European property market. In recent years, the sector has attracted growing interest from institutional investors thanks to particularly solid market fundamentals, underpinned by rising demand, a growing university population and the international mobility of students.

In Italia, the potential for growth appears particularly significant. With around two million university students, the availability of dedicated accommodation remains limited, with a penetration rate of less than 5%, far below the levels of between 20% and 30% recorded in more mature European markets. In major university cities, such as Milan and Padua, demand for beds in modern, professionally managed facilities exceeds the available supply by three or four times.

For Invel, the transaction reinforces its investment strategy in the residential sector and enables it to establish a foothold in an industry characterised by strong structural growth drivers. For Stonehill, which has been operating in Italia since 2017, the partnership represents a further step in the expansion of its development programme in the country. The group has already developed and sold approximately 2,100 PBSAs in Europe to institutional investors, consolidating significant experience in the sector.

“This transaction represents a significant step in the expansion of our investment strategy in the residential sector, where we see some of the most interesting structural opportunities on the market,” explains Gabriele Magotti, Chief Investment Officer at Invel Real Estate. “The imbalance between supply and demand for student accommodation remains a key issue in the European property market, and Italia continues to be a market of great strategic importance.” According to Matthew Cartisser, chief executive officer of Stonehill International Group: “The projects in Milan and Padua will be among the best-positioned student accommodation facilities in two of the country’s most important university cities.”