Planet Smart City and Palladium USA (a subsidiary of the Palladium Italy operating in the United States since 1992) have completed the sale of a 324-unit residential complex located in Little Elm (Dallas, Texas) to a US institutional investor.
The complex, developed by the two companies in equal partnership, is the first smart multifamily housing project in the United States developed according to the Planet Smart City model. This model integrates innovative solutions in four areas: environment, planning and architecture, technology systems and social inclusion.
The model incorporates approximately thirty smart solutions, including an innovation hub, co-working spaces, a gym, a community kitchen, an object library, bike sharing and repair facilities, energy-saving solutions (such as smart lighting and optimised irrigation systems), smart lockers, and smart locks accessible through Planet Smart City's proprietary digital platform.
Built over a 28-month period (from 2021 to 2023), the project was developed on a 46,000 square metre site with a 26,000 square metre residential area. This unique offering was well received by the market: within three months of completion, over 90% of the units were let. Six months later, the asset was sold to an institutional investor at an internal rate of return (IRR) in excess of 30%.
The success of this operation and the opportunities presented by the Texas market, which is expected to grow due to positive demographic trends, are leading Planet Smart City and Palladium USA to consider additional projects, possibly involving third parties.
Little Elm is one of eleven major smart housing projects that Planet Smart City has completed or is nearing completion. In Brazil, there are six projects in various regions, comprising approximately 5,000 homes, and in India, three projects in Pune, Maharashtra, comprising approximately 4,000 homes in partnership with Kolte Patil Developers, one of the country's leading real estate developers.
Planet Smart City's smart housing development model has also been adopted by leading property developers in Italy. One of these is Quartiere Giardino, a Palladium-owned neighbourhood in Cesano Boscone, Milan, Italy, that has been revitalized by integrating smart architectural, digital, environmental, and social solutions created by Planet. Planet Smart City is advising on 13 projects for the construction of new neighbourhoods (known as greenfield development) or the redevelopment of urban areas or neighbourhoods through innovative solutions (known as brownfield development).
Gianni Savio, CEO of Planet Smart City, said: "The Little Elm project confirms the validity of our business model, which we implement in areas with high housing deficits. The attention from institutional investors and the positive market reception show that the potential of the smart housing segment is very high and highly appreciated in geographically diverse areas".
Thomas E. Huth, President and CEO of Palladium USA, Inc., said: “Working with Planet Smart City on the Little Elm development brought in new creativity in applying their smart solutions through their proprietary digital platform. These new smart solution elements were well received by our residents. We look forward to continuing our multifamily development activities and relationship with Planet Smart City well into the future”.
