• The Sponsor is offering a senior finance opportunity for the acquisition of a currently unoccupied office site in Verona, Italy with the intention of acquiring change of use planning permission to build 144 residential units with complementary commercial spaces. The building is currently owned by original owners, an Italian family that is looking to sell the asset.
• The site is located in close proximity to Piazza Bra, the largest piazza in Verona. The piazza is a social hub for the city, and lined with numerous cafés and restaurants. The piazza also hosts the Verona Arena, an amphitheatre built nearly 2000 years ago and now a world famous music venue. Verona's town hall, the Palazzo Barbieri, also looks out across the piazza. Foreign interest for speculative units is growing, together with local buyers looking for new units close to the city centre.
• Initial conversations with the two governing bodies key to the planning process in Italy, the Verona Local Authority and Soprintendenza, started in early October and initial design plans have been reviewed. The project received strong political support from both authorities, since they want to avoid the current empty buildings/site becoming an area of social decay. The plan is to submit the planning request within 4 months and we expect a positive outcome 5 months later.  
• Estimated GDV of the development upon buildout is €110.5m. Estimated Land Value with planning is€31.5m, based on an average selling price of €5,500 per square meter. The property tas it is has 23,765 sqm above ground, 7,519 below ground and 7,125 sqm in the ground floor. Total estimated planning costs are €1m.
• The Sponsor has agreed an acquisition price of €22m (€730/sqm) which is below replacement cost and is seeking to raise senior finance equivalent to 65% Loan to costs, with the remaining costs to be funded via equity. Finance facility will be used for site acquisition, with repayment via development finance upon grant of planning permission.

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