Catella European Residential III Fund Receives First International Commitment with €40 Million from France’s Primonial REIM
Berlin-based Catella Residential Investment Management’s CER III Fund, which had its first close in July as CRIM’s maiden pan-European residential vehicle open to international investors, has attracted its first commitment from outside Germany with €40 million from France’s Primonial REIM. The fund is targeting at least €1.0 billion in investments across European residential real estate markets, from an initial launch with €50 million in seed capital from a German pension plan, which also made a top-up of €20 million.
Primonial REIM is one of Europe’s leading third-party real estate portfolio management companies for institutional and private investors, with around €17 billion in total assets under management.
Michael Fink, Managing Director, CRIM, said: “The CER III fund’s Luxembourg-based structure provides international investors with easy access to Catella’s residential investment platform, the largest and most geographically diverse across European markets.Wwe anticipate that we will be able to announce further new investors alongside Primonial REIM in the near future. There is extremely strong investor demand for the fast-growing and defensive ‘living sector’ of real estate assets in a world of very low, or negative, investment yields, particularly in fixed income products.”
Casper van Grieken, Head of Equity Placement at CBRE Netherlands, which acted as placement agent for the CER III Fund, added: “To have achieved a first fund raise in such a short space of time is testament to the quality and track record of the Catella platform. With a compelling pipeline and strong ability to source attractive investments across Europe, this strength of offering has not been seen in the market for some time.”
The Catella European Residential III Fund has an investment pipeline of more than €250 million –mainly standing investments- in markets including Denmark, The Netherlands, Belgium, Germany and France. The fund’s first €42 million acquisition in June, was of 83 apartments at Fillippahaven in the Valby district of Copenhagen.
CER III’s strategy is to invest in selected growth regions in Germany, the Netherlands, France and the Nordics, as well as up to 50% of the portfolio in Spain, Poland, and the countries of the European Economic Area. The properties targeted for the fund are modern and affordable apartments with a stable cash flow, including new developments, Investments can also be made in modern living market segments such as senior living, student housing and serviced apartments.
About Catella Residential Investment Management GmbH (CRIM)
Catella initiated its first one billion-euro European residential fund in 2007 and this has produced average net returns for investors of 8.2% a year since launch until end-Q3 2019. The Team launched also the first specialised European Student Housing Fund in 2013.
CRIM is a subsidiary of Swedish Catella AB in Stockholm and its residential real estate business includes portfolio management, acquisition and sales and asset management. The company manages and advises several funds and mandates with assets under management of c. €3.5 billion across ten countries in Europe.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.