Catella European Residential III fund lifts capital commitments to €235 million
Berlin-based Catella Residential Investment Management’s (‘CRIM’) CER III Fund has received €125 million from two new institutional investors, including €100 million from a prestigious Dutch pension fund and €25 million from a leading German fund manager, bringing its total capital commitments to €235 million. This major achievement brings the Fund closer to its mid-term target of €1 billion on the way to establish a multi-billion open-ended Fund in investments across European residential real estate markets. The successful double signining is following its first close in July as CRIM’s maiden pan-European residential vehicle open to international investors. CRIM already manages in comparable strategies the €1,5 billion in the Catella European Residential Fund and €900 million Catella Wohnen Europa Fund.
Catella European Residential III now has four institutional investors across Europe after attracting its first commitment from outside Germany in October last year with €40 million from France’s Primonial REIM. The initial launch was seeded by a €50 million commitment from a German pension plan, which subsequently made a top-up of €20 million. Primonial REIM is one of Europe’s leading third-party real estate Investment management companies for institutional and private investors, with around €19 billion in total assets under management.
Michael Fink, Managing Director, CRIM, said: “Demand for affordable and highly sustainable rental housing will be greater than ever after the Covid-19 crisis passes and we continue to see very strong interest from both German and international investors for our cash flow oriented, managed residential investment vehicles. Residential assets are also already proving to be the most defensive and resilient among property sectors in a potemtial economic recession. Catellas research and risk models takes these downside scenarios into account when constructing portfolio compositions. The CER III fund’s Luxembourg-based structure provides international investors with easy access to Catella’s platform, which is the largest and most geographically diverse across European markets. We anticipate that we will be able to announce further new investors alongside our new Dutch and German clients in the near future.”
Casper van Grieken, Head of Equity Placement at CBRE Netherlands, which acted as placement agent for the CER III Fund, added: “Amid the huge uncertainties stemming from the coronavirus pandemic, Catella has succeeded in adding two more heavyweight investors to its stable. It is quite a feat to secure transactions in the current environment and this achievement is clearly an endorsement of the quality and track record of Catella’s residential platform and strong ability to source attractive investments across Europe.”
CER III is focussing on affordable housing assets and integrates sustainability within the investment process to face also climate change challenges. Catella has an investment pipeline of more than €250 million – mainly standing investments – in markets including Denmark, Finland, the Netherlands, Belgium, Germany and France. The Fund comprises already investments in four European countries since first closing mid 2019. The Fund’s first €42 million acquisition in June 2019, was an asset with 83 apartments at Fillippahaven in the Valby district of Copenhagen. In the end of 2019, the Fund acquired subsequently three residential projects in Germany and the Netherlands for approximately €65 million, taking total investment volume to more than €100 million. Each of the properties is situated close to leading business centres in the German cities of Berlin and Munich, and the southern Dutch town of Helmond. The fifth asset in south-east of France is in its final closing stage.
CER III’s strategy is to invest in selected growth regions in Germany, Benelux, France, Austria and the Nordics, as well as up to 50% of the portfolio in Spain, Poland, UK and other European countries. The properties targeted for the Fund are modern and affordable residential, including new developments, providing stable cash flow and long term value growth. Investments include modern living formats such as senior living, student housing and serviced apartments.
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