The Catella European Residential Fund III, launched in March 2019, has completed a first close and secured a maiden investment in Copenhagen, passing initial milestones towards a target €1.0 billion total investment volume. The Fund, managed by Berlin-based Catella Residential Investment Management (CRIM), is the first Luxembourg-based pan-European vehicle allowing international investors access to a geographically diversified portfolio of assets in the residential sector. The two earlier CRIM funds were structured for German institutional investors.
The first close of €50 million consisted of seed capital from a large German pension fund and the Fund’s first investment of €42 million is in 83 apartments at Fillippahaven in the Valby district of Copenhagen, five kilometers west of the city centre. The portfolio management team has secured, and will announce in the coming weeks, an initial forward pipeline of €200+ million in investments in markets including Denmark, the Netherlands, Germany and France.
For the Fund, Catella has also agreed a placement agent partnership outside Germany with CBRE EMEA Equity Placement, which is aiming to raise capital from institutional investors, foundations, funds of funds and other professional investors. Vistra Fund Management S.A., a Luxembourg-based Alternative Investment Fund Manager (AIFM), will manage the Fund.
Michael Fink, Managing Director at CRIM, said: “Residential real estate investment has been growing very rapidly and apartments overtook retail as the second largest property sector after offices in Europe in the second half of last year. International institutional investors have a strong appetite for the stable long-term rental income flows that residential has to offer and that are available in our new Fund. There is no other specialised investment manager that can provide the same extensive geographically diversified platform as Catella. Residential investing has gone cross-border and our teams are there on the ground to manage these assets across nine major markets.”
The Fund is an open-ended Luxembourg SICAV-RAIF focusing on building a diversified portfolio of modern and affordable apartments with a stable cash flow through new developments and standing properties in growing market segments such as student housing, young professionals and senior housing.
The Fund is investing in selected economic growth regions in Germany, the Benelux, France and the Nordics, as well as up to 50% of the portfolio in Spain, Poland and other European markets.
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 7.9% a year since launch until end-May 2019. The fund was one of the first major real estate investment vehicles to invest in the fast-growing student housing market at an early stage. The first specialised European Student Housing Fund was launched 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 more than € 3 billion across nine countries in Europe.
For more information contact:
Lisette van der Ham
Head of PR & Corporate Communications
Catella Residential Investment Management GmbH
Upper West, Kantstraße 164,
M: +31 (0)6 83200561