Berlin-based Catella Residential Investment Management GmbH (CRIM) has acquired two German residential developments in Hamburg and Dortmund from property developer Gröner Group GmbH on behalf of the Catella European Residential Fund III (CER III), bringing the total value of the Fund’s assets under management to more than €500 million.
The CER III fund passed the half billion Euro AUM milestone, including approximately 30-35% leverage, within two years, after launching as a SICAV Luxembourg-registered investment vehicle with €50 million in seed capital in 2019.
Michael Keune, Managing Director CRIM, said: “The CER III Fund launched just two years ago into the sweet spot of surging institutional investor appetite for diversified European residential assets with the highest sustainable and societal ESG credentials. The rise of residential at the top of the European real estate sector investment hierarchy has continued unabated through the pandemic as the resilience of the returns from the type of affordable rental properties Catella is targeting and the hedging shield they offer against random extreme ‘Black Swan’ market risks, such as Covid-19 and climate change events, are growing in the awareness of pension funds and insurers.”
The 19,268 square metre Hamburg development was purchased for €120 million and is located in the western quarter of Altona, adjacent to the Altonaer Volkspark. The project comprises a total of 289 residential units. Upon completion “Bahrenfelder Carrée” will provide 121 flats, 108 studios, 60 subsidised residential units, four commercial units and 177 car-park spaces. The up-and-coming Bahrenfeld district is home to the world-renowned DESY particle physics centre and Barclaycard Arena and has excellent connections to Hamburg's road network as well as public transport. The commercial space has been let, long-term, to two grocery retailers. The first phase of construction is expected to complete in 2021 and the second phase is scheduled to finish in 2022.
Patrick Au Yeung, Fund Manager CER III, said: "Bahrenfelder Carrée will be a notable addition to the neighbourhood, with its broad mix of residential housing and modern design contributing positively to the overall improvement of the area and providing much needed homes. Its 60 subsidised residential units and construction to the energy-efficient KfW-55 standard, which will include a central ventilation system and ecological building materials, make a positive societal and environmental impact in line with the Fund’s ESG goals.”
Hamburg has a population of around 1.8 million and lies at the centre of a metropolitan region that is home to more than 5.3 million inhabitants. The Hanseatic city, Europe’s third largest port, is an important education and research location with numerous universities, colleges, and research establishments. Its many cultural institutions, such as the Elbphilharmonie concert hall, together with its historic warehouse district, a UNESCO world heritage site, and famous ‘Reeperbahn’ entertainment quarter attract millions of visitors every year.
The "Südtribüne" project in Dortmund was acquired for around €22 million. It is located on Ruhrallee, close to the popular “Kreuzviertel” district with its wide range of leisure and cultural activities. The property comprises 63 residential units, a retail area and 54 parking spaces. Future residents will benefit from its proximity to the city centre and numerous shopping facilities.
With over 585,000 residents, Dortmund is the third-largest city in North Rhine-Westphalia and the largest one in the Ruhr. Traditionally it was an industrial town, heavily invested in coal and steel production and beer brewing but, since the 1970s, has emerged as a centre for administrative, logistics, research, and science services.
Michael Keune, Managing Director CRIM, concluded: "The 'Südtribüne' project is a great example of how to successfully repurpose inner-city properties that have fallen obsolete. The project is being developed above ‘The Bunker’, part of a network of WWII air raid shelters which is still open to visitors today and until 1992 a disaster coordination centre. It forms the cornerstone of a sustainable housing quarter and is part of a wider regeneration scheme which will substantially improve the location’s attractiveness as a residential destination. These two acquisitions have taken the value of the assets under management in CER III to over the half a billion Euros mark, meaning we are well on the way to our mid-term target of €1 billion AUM.”
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential fund in 2007 with a volume of €1.6 billion and it has since achieved an average net return for investors of more than 9.0% per year until the end of Q2 2021. The team also launched the first dedicated European Student Housing Fund in 2013.
CRIM is a subsidiary of the Stockholm-based Catella AB Group and its residential real estate business comprises portfolio management, acquisitions, sales and asset management. CRIM manages and advises several funds and mandates and has assets under management of more than €5.0 billion across 10 European countries.
For further information, please contact:
Lisette van der Ham
Head of PR & Corporate Communications
Catella Residential Investment Management GmbH
Upper West, Kantstraße 164, 10623 Berlin
M: +31 (0)6 83200561