The Munich-based investment manager Catella Real Estate AG has launched the “Catella Dutch Residential II”, a successor to the successful “Panta Rhei Dutch Residential” fund. Like its predecessor, the investment fund, which has a target fund volume of more than EUR 300 million, focuses on investments in the Dutch and, to some extent, Belgian residential real estate markets. Initial potential investments are already being appraised.
The special fund “Catella Dutch Residential II” (CDR II), which has been launched specifically for institutional investors, invests primarily in regions with strong local economies in the Netherlands and to a small extent in Belgium. The focus is on traditional residential real estate, with living space preferred particularly by older citizens (senior housing) included in the mix. The creation of a broadly diversified portfolio is intended within the next two years. Marketing has begun, and a first close is planned for as early as September. Based on a minimum investment total of EUR 10 million and a 10-year term, plus extension options, the investment fund is planning an average target return of 5.5 percent p.a. (BVI method).
The investment fund has been designed as a club deal, ultimately aiming to have a handful of institutional investors. The lead investor is a Northern German utility.
The fund will be managed by Catella IM Benelux B.V., which was established from the long-standing investment partner Panta Rhei Partners B.V.. Headquartered in Maastricht an an office in Amsterdam, the team has real estate assets of EUR 650 million under management in the Benelux countries. The takeover of the local partner confirms Catella’s ambition to continue investing in Benelux countries.
The Dutch real estate market has performed well in recent years. The long-term fundamental demand and supply-side factors are positive for investors in the traditional residential rental and senior housing market. A favourable demographic outlook as well as current trends in household sizes are exacerbating the housing shortage, and this will in turn impact on price and value performance. Increases in both rentals and property values are pointing to further growth. What is more, the supply of senior housing stock is extremely limited, and this will continue to have a positive effect on the performance of the fund.
The fund’s predecessor, the “Panta Rhei Dutch Residential” (PDR), will be fully invested in the course of the year. With an average overall return of more than 5 percent, the investment fund has accumulated real estate assets of currently EUR 155,5 million. The fund has a total of 14 properties in its portfolio, which are virtually fully occupied. All remaining properties still to be acquired have already been secured for the fund so that there will be no conflict of interests between the PDR and the CDR II.
“The cooperation with our Dutch partner, which is now part of the Group, has been very successful in recent years. Following the full investment in the first Dutch residential real estate fund, the continuation of our cooperation was a foregone conclusion in order to continue to harness the opportunities offered by the Dutch residential real estate market for our investors. In addition, with other Benelux countries and senior housing added to the mix, we are able to achieve an interesting risk-return profile”, says Henrik Fillibeck, member of the Managing Board of Catella Real Estate AG.