The Yellow Fund, an alternative investment fund focused on hybrid hospitality, has secured a €65 million financing facility from UniCredit. The fund is managed by Castello SGR and is fully owned by Invel Real Estate.

The capital will support the acquisition and development of more than 2,000 beds. These properties will be operated by YellowSquare across key cities in Italy. As a result, the move aligns with the fund’s plan to expand its presence in major European urban markets.

Focus on Urban Regeneration and Sustainability

The transaction centres on urban regeneration projects and sustainable construction practices. Therefore, the financing is expected to qualify as a green loan.

This classification reflects a broader commitment to environmental, social, and governance (ESG) standards. It also highlights the growing focus on responsible real estate development within the hospitality sector.

Advisory and Legal Support

Several firms supported the transaction across legal, tax, and notary areas.

Gianni & Origoni advised the Yellow Fund on legal matters. The team was led by partners Filippo Cecchetti and Giuseppe De Simone. In addition, multiple counsels and associates handled financing, real estate, and tax-related aspects.

On the other hand, McDermott Will & Schulte advised UniCredit. Their team worked on civil and tax matters related to the financing facility.

Finally, notary services for the transaction were handled by Giuseppe Ottavio Mannella in Milan.

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