Cain International has provided a €120mln development bond to Italian firm Barletta Group.
It is the first real estate finance agreement that the company has struck in Continental Europe following arrangements in the UK.
In a statement, the company said the development bond would help Barletta with the expansion of Soho House and the Rosewood Hotels brands in the Italian market by providing the facility on an initial 42-month term.
Soho House Rome is to be developed on a site currently owned by Barletta Group in the heart of San Lorenzo. The Rome location of the global members club will comprise a 32-room hotel, 40 serviced apartments, two restaurants and a Cowshed spa. It is due to complete in 2020.
Barletta Group has also agreed the acquisition of the Palazzo Dona’ Giovannelli, a 14th century residential property, in the Cannaregio district of Venice. This will be converted into a 46-bedroom five-star hotel under a management agreement with Rosewood Hotels. Located close to many of the city’s legendary landmarks, including the Strada Nova and Piazza San Marco, the building was designed by Filippo Calendario, the master architect of the nearby Palazzo Ducale. Due to complete in late 2021, this will be the second Rosewood Hotel in Italy.
Matteo Milan, principal in the real estate finance team at Cain International, led the deal. He said, ‘We are excited to have completed our first transaction in mainland Europe, partnering with Gruppo Barletta, an established developer with over 50 years’ experience.’
He added, ‘This transaction is a natural next step for Cain International as we expand our debt platform into mainland Europe.’
Paolo Barletta at Barletta Group, said hospitality was one of the fastest growing sectors in the industry. However, there is limited appetite for development finance from Italian banks, he added.