Kryalos and King Street Launch 'Domo' Fund with 880-Bed Student Housing Acquisitions

Kryalos SGR, an independent asset management company with EUR 14.2 billion in AuM, and King Street Capital Management have announced the launch of "Domo," a new Italian alternative real estate fund. The fund has completed its first two forward purchase investments, acquiring two student housing properties in Milan and Padua that will deliver a combined total of over 880 beds. The transactions further consolidate Kryalos’s exposure to the sector, expanding its Purpose-Built Student Accommodation (PBSA) platform to approximately 1,500 beds nationwide.

The Milan operation centers on the acquisition of a property located on Via Cesare Beruto, in the heart of the Città Studi district near the Politecnico di Milano. Sold by an investor pool represented by ISA – Istituto Atesino di Sviluppo S.p.A. and Pohl Immobilien S.r.l., the asset will be entirely redeveloped by Pohl Immobilien. Once completed, the LEED Gold-certified facility will offer 350 beds and premium amenities, including a swimming pool, gym, cinema room, and sports field.

Concurrently, the Padua transaction involves the forward purchase of a future university residence located on Viale della Pace, strategically positioned between the train station and the city center. Developed by Gruppo Industrie Edili Holding on a site acquired from IFIP, the LEED Gold-certified structure will feature 530 single rooms, each equipped with a private kitchen and bathroom. Padua represents Italy's fifth-largest university market, hosting approximately 70,000 students, the vast majority of whom are mobile.

"These operations confirm the strong interest of Kryalos and King Street in the student housing sector, a segment with attractive growth prospects supported by long-term demographic and structural trends," stated Paolo Bottelli, CEO of Kryalos. "Milan and Padua represent highly attractive markets, characterized by structurally high demand and an offering that is still insufficient."

A comprehensive team of advisors facilitated the fund launch and subsequent acquisitions. A&O Shearman advised the buyers on all real estate investment profiles, including the structuring and set-up of the Domo Fund, negotiation of acquisition contracts, and legal due diligence across both assets. The A&O Shearman team was led by partner Andrea De Pieri, supported by senior associate Flavia Guancioli and associate Valentina Masucci. 

Dentons provided assistance on administrative law aspects with a team led by partner Jacopo Brambilla Sica.

The tax department of EY, coordinated by partner Alessandro Padula alongside manager Giorgio Marchesi, senior Giovanni Bruno, and staff members Martina Doni and Michela Cipriani, managed all Italian and international tax structuring, contract negotiation, and tax due diligence.

Furthermore, EY-Parthenon assisted Kryalos with financial due diligence through a team led by partner Andrea Scialpi, supported by senior manager Alessandro Bianchi and manager Fabio Campetella.