Harrison Street has formed a programmatic joint venture with Artisa Group, an international real estate development company active in the Swiss and European markets.
The joint venture will be seeded with the acquisition of Viale Monza, a 260-unit residential asset in Milan, Italy.
The acquisition represents Harrison Street’s entrance into the talian residential & PBSA sector.
Upon completion, Viale Monza will be managed by City Pop, an experienced living operator from Switzerland.
The property is located steps away from the metro station into the city center, and other attractive facilities such as a supermarket, pharmacy and gym are located within a short walking distance.
Viale Monza will offer attractive on-site amenities to its residents and private outdoor spaces. The development of the Property will occur in two phases, with the first phase of approximately 77 units delivering in spring 2024 and the second phase expected to be fully completed by 4Q 2024.
Italy is one of the countries within the G7 with the strongest growth after the pandemic, relatively low unemployment rates in key regions and early indications that inflation is starting to moderate. The residential market in Italy is undersupplied and follows the same demographic trends as other major European markets. Milan is the economic center of Italy and GDP growth has significantly outperformed the national level over the past decade and is on par with other major Western European cities. With 218k students of whom 10.8% are internationals – Milano has very limited privately managed state of the art Purpose-Built Student Accommodation (PBSA) and living assets and the majority of PBSA is owned by public entities.
The newly formed joint venture between Harrison Street and Artisa expects to scale over time as it invests in Italian Living opportunities with an initial focus on Northern Italy.
The joint venture intends to pursue both the acquisition of ground-up developments as well as the refurbishment and repositioning of existing commercial buildings, offering state-of-the-art living options to the chronically undersupplied Italian market.
Paul Bashir, Chief Executive Officer of Harrison Street’s European business, said: “We’re pleased to be launching this JV with Artisa, a high-quality operating partner with a strong track record in the living sector, we look forward to growing the portfolio and relationship over time. Italy has the second largest unmet student demand in Europe, with a significant undersupply of purpose-built student assets. We’re pleased to meet that demand with Viale Monza, which signifies Harrison Street’s entry into the Italian residential and PBSA sector.”
“Embarking on this JV with Harrison Street is a source of great joy for Artisa Group. It’s a validation of our European positioning, affirming our commitment to continuity and our determination to extend our presence beyond Switzerland. This venture aligns seamlessly with our innovative living concept, City Pop, and we are excited about the journey ahead.” says Flavio Petraglio, CEO of Artisa Group.
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