Renovation and Change of Use — Bresso Basement (Apartment A)

1. Executive Summary

GSTH S.R.L., a Milan-area company established in 2011 and led by Giuseppe Spadafora, is raising €100,000 to finance the renovation and residential conversion of Apartment A (81 m² usable area) within a basement-level property at Via San Francesco d'Assisi 6, Bresso (MI), on the northern border of Milan. Total direct project costs amount to €109,048, with a projected exit value of €182,380–€214,856 (apartment plus garage box); renovation works are already underway and the apartment is already listed for sale at an asking price of €200,000 (view the listing on immobiliare.it). The loan has a 12-month term at a 13.5% p.a. base rate, paid monthly, with bullet principal repayment at maturity, plus a volume cashback of 1% (investments ≥ €3,000) or 2% (investments ≥ €10,000). The property is already owned by Mr Spadafora, who secures the €100,000 loan with a real estate mortgage granted as third-party guarantor against a post-renovation value of €200,000 — a 200% coverage. Funds are disbursed through a notary escrow account and released only at the notarial closing at which the mortgage is executed.

2. Location Analysis

Bresso is a municipality of 26,248 inhabitants in the Metropolitan City of Milan, located directly on Milan's northern boundary, approximately 7 km from the city centre. The town borders Parco Nord Milano, one of the largest metropolitan parks in Italy, and is connected to Milan by frequent surface transit lines with interchange to the M5 metro line (Bignami terminus) immediately to the south. Its position places residents within commuting distance of Milan's employment core, the Bicocca university and business district, and the Sesto San Giovanni redevelopment area.

The local residential market is dense and liquid, driven by demand from buyers priced out of Milan proper. In March 2026, the average asking price for residential property in Bresso was €2,519/m², against a provincial (Milan) average of €4,136/m² — a discount that continues to attract first-time buyers and investors. Prices have been stable over the past two years (peak of €2,597/m² in September 2024), while residential rents rose +16.5% year-on-year to €15.08/m²/month in March 2026, indicating firm underlying occupier demand (source: immobiliare.it market observatory, March 2026).

3. Developer Profile

The borrower is GSTH S.R.L. (Registro Imprese MI, REA 1971404, fiscal code 07617850966), a limited liability company incorporated on 21 November 2011 and active since January 2012, with its registered office at Via San Francesco d'Assisi 6, Bresso (MI) — the same address as the project property. The company has a fully paid-in share capital of €20,000 and operates in business consulting and the real estate sector (ATECO 70.20.09). Its corporate object expressly includes real estate operations (acquisition, sale, renovation and letting of properties).

The company is controlled and managed by its sole administrator, Giuseppe Spadafora (90% shareholder), a serial entrepreneur with long-standing experience in real estate renovation and repositioning projects in the northern Milan area. Mr Spadafora personally owns the project property and the related garage boxes, and supports the operation both as asset contributor and as third-party mortgage guarantor (see Section 7).

GSTH's filed accounts (micro-enterprise format) show a small but consistently profitable operating history: revenues of €17,875 (2023) and €17,850 (2024), positive net results in every recent year, net equity of €30,185 at 31 December 2024, and no bank debt.

4. Project Overview

The project is the renovation and change of use from productive (cadastral category D/7) to residential of a basement-level (piano S1) property at Via San Francesco d'Assisi 6, Bresso. The building's total gross floor area (SLP) is 246 m²; this campaign relates to Apartment A, the first residential unit created within it.

• Property type: residential apartment (post-conversion), currently part of a D/7 unit at piano S1
• Address: Via San Francesco d'Assisi 6, 20091 Bresso (MI)
• Usable area (SU): 81 m² (84 m² gross floor area)
• Included in the sale: one C/6 garage box of 12 m² at ground level, same address
• Renovation scope: full refurbishment — building works, mechanical and electrical systems, window frames and finishes, at an average cost of ~€900/m²
• Permit status: design and SCIA filing completed and approved, including the change of use to residential; technical (thermotechnical) and geological reports commissioned and delivered
• Works status: renovation works have already started
• Energy certificate: post-renovation APE to be issued on completion of works
• Sales status: the apartment is already listed for sale on immobiliare.it at an asking price of €200,000
• Expected completion: renovation and sale are planned within the 12-month loan term
• Proximity: adjacent to Parco Nord Milano; ~7 km from central Milan; surface transit connections to the M5 metro line (Bignami)

5. Market Analysis

Residential asking prices in Bresso averaged €2,519/m² in March 2026, essentially flat year-on-year (−0.04% vs March 2025) and within a stable two-year band of €2,450–€2,597/m² (immobiliare.it, March 2026). The Milan provincial average of €4,136/m² is 64% higher, positioning Bresso as an affordable entry market on Milan's border. Rental values rose sharply — +16.5% year-on-year to €15.08/m²/month — reflecting sustained occupier demand in the first ring around Milan. New residential development is active in the municipality (e.g., the Silvadomus energy class A complex on Via Don Pozzi), confirming developer confidence in local absorption.

The project's exit assumptions of €2,000–€2,400/m² (implying €162,380–€194,856 for the 81 m² apartment) sit at or below the municipal average asking price for all residential stock, despite the unit being fully renovated on delivery. Fully refurbished small and mid-size apartments in Bresso and adjacent municipalities (Cinisello Balsamo, Sesto San Giovanni) are routinely marketed at or above the municipal average, so the underwriting is conservative relative to observed listings. The €20,000 assumed for the garage box is consistent with local single-box listings of comparable size. Agenzia delle Entrate — OMI semi-annual quotations for the relevant Bresso zone provide a second, independent reference frame and are available in the campaign data room.

6. Financial Analysis

The property is already owned by the guarantor and is contributed to the project at nil acquisition cost; the acquisition line therefore reflects only the garage box. Its current pre-renovation market value is estimated at approximately €58,800 (≈€700/m² × 84 m², in line with average values for productive/commercial space in the area).

Projected profit:

At the mid scenario, the gross margin is 40.1% of revenue and the net margin after all financing costs is 28.1% of revenue (41.9% on total project cost). These margins reflect the nil book cost of the contributed unit; imputing its €58,800 market value to the cost base still leaves a positive net economic margin in all scenarios.

Repayment source: sale of Apartment A and the garage box, already on the market at an asking price of €200,000 (see Section 7). The low scenario alone (€182,380 gross, €173,261 net of agency commission) covers the €100,000 principal and €13,500 of interest with substantial headroom.

7. Funding and Investment Opportunity

Capital stack and funding plan. This campaign fully funds the external financing requirement of Apartment A: the €100,000 loan covers the bulk of the €132,948 total project cost, with the developer contributing the property itself and the remaining cash costs from own funds. No further external tranches are planned for Apartment A. The wider property comprises 246 m² of gross floor area, of which Apartment A is the first unit; any subsequent phases would be financed and secured separately. Repayment channels, in order of preference: (1) sale of Apartment A and the garage box — already listed; (2) sale or refinancing of other assets held by the guarantor; (3) additional developer equity.

Platform. The campaign is hosted on stock.estate, a European Crowdfunding Service Provider licenced by the Romanian Financial Supervisory Authority (ASF, licence PJR28FSFPR/400002) and operating under Regulation (EU) 2020/1503 (ECSPR).

8. Risks and Mitigations

Market risk. The apartment may sell more slowly or at a lower price than projected. The exit assumption of €2,000–€2,400/m² is at or below the Bresso municipal average asking price of €2,519/m² for a fully renovated unit, and even the low scenario covers principal and interest with headroom.

Construction risk. Renovation costs or timelines may exceed the plan. Works are a standard-scope refurbishment budgeted at market rates (~€900/m²), permits are already approved, and cost overruns are borne by the developer, not by investors.

Repayment risk. Repayment depends primarily on the sale of the unit within the 12-month term. The apartment is already on the market at €200,000; if the sale slips beyond maturity, the extension regime (base rate +2 pp) and, in default, the penalty regime (base rate +4 pp) apply while the mortgage remains enforceable.

Collateral and structure risk. The property is owned personally by the guarantor rather than by the borrowing company, and the 200% coverage is calculated on the post-renovation value of €200,000 rather than on the pre-renovation value of the asset. Mitigation: the mortgage is granted directly by the owner as third-party guarantor and executed at the notarial closing before any funds leave the notary escrow account; renovation works are already underway, the permits are approved, and the €200,000 value is corroborated by the live sale listing rather than by projection alone.

Regulatory / permitting risk. Change-of-use conversions can face administrative delays. In this case the SCIA and the change of use to residential have already been approved, removing the principal permitting uncertainty before launch.

Funding-completion risk. The campaign covers the full external funding need of Apartment A; there is no dependency on future crowdfunding tranches. The developer covers the residual cash costs (~€33,000) from own funds.