Wiesbaden, 6 October 2026 – Aareal Bank AG has provided a €172.7 million loan to Proprium Capital Partners to refinance two high-quality purpose-built student accommodation (PBSA) properties in Milan. Both properties have qualified for green loan financing under Aareal Bank’s Green Finance Framework.
This transaction marks Aareal Bank’s first financing for Proprium Capital Partners, an experienced alternative asset manager specialising in operational real estate, with €3.7 billion in equity under management. Proprium is part of L&G's Asset Management business, a major global investor across public and private markets, with €1.3 trillion in assets under management.
The properties are managed by Collegiate, a leading PBSA developer and operator with a proven track record across the UK and continental Europe. Collegiate has been involved in the delivery and management of over 22,000 beds across more than 50 schemes.
A premium student accommodation portfolio
Together, the two properties offer nearly 1,200 beds and are positioned at the premium end of the market. The assets compete directly with Milan’s highest-quality private rental accommodation. A comprehensive amenity offering – including swimming pools, spas, gyms, cinemas, dedicated study spaces and communal lounges – delivers a best-in-class student living experience.
Demand is underpinned by the assets’ proximity to leading STEM, business, fashion and art universities, which offer highly regarded programmes and attract domestic and international students.
“We are delighted to establish a new client relationship with Proprium through this transaction,” said Benjamin Walter, Head of Alternative Living Properties at Aareal Bank. “PBSA remains an attractive asset class, supported by strong structural demand and a continued shortage of high-quality student accommodation in key European cities.”
“Aareal Bank’s deep commercial real estate financing expertise and clear understanding of local markets made Aareal Bank a valuable partner for the refinancing of this portfolio,” said Lorenzo Marcone, Principal, Proprium Capital Partners. “The tailored financing solution supports a portfolio of well-positioned assets in one of Europe’s key student markets.”
Aareal Bank acted as arranger, facility agent, and security agent. Legal advice was provided by Chiomenti and JLL acted as valuation advisor for both assets.
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