The funding has been agreed on behalf of the €4 billion M&G European Property Fund, managed by David Jackson and Simon Ellis, as part of a strategy to broaden its residential exposure in Continental Europe.

The 15-storey scheme, which is being developed by Stonehill Group, will be ready for occupation by students in summer 2022. Located in the ‘Little Bologna’ district, which is popular for its bars, cafes and art scene, it is a 20-minute walk away from the University of Bologna.

Marcus Roberts, Head of European Investment and Development, Operational Capital Markets at Savills, commented: “We are delighted to have advised on and closed our first forward funding student accommodation transaction in Bologna between Stonehill and M&G. It is positive to see activity continuing in the sector in spite of the wider headwinds brought about as a result of Covid-19.”

Giacomo De Feo, Director, Capital Market, Savills Italy, added: “This is a significant deal during what can only be described as a challenging year. Appetite for operational residential assets remains strong thanks to the sector’s strong fundamentals and long-term prospects.”

The asset’s sustainability aspects have student health and wellbeing at the heart of the design strategy. Living accommodation, study areas and private dining rooms will be powered by air source heat pumps and intelligent technology-led energy saving systems. The asset’s green credentials are strengthened by 294 bicycle spaces, 18 electric scooter spaces and car charging points. Students will be able to enjoy panoramic views from the building’s sky lounge, as well as a landscaped courtyard, gym, yoga studio, cinema and gaming pods.