Berlin-based Catella Residential Investment Management (‘CRIM’) has acquired the Telegrafkollegiet student residence in Copenhagen for €45 million for the Catella European Student Housing Fund II (CESHF II). The acquisition follows a successful third capital raise in Q1 2021 which saw German institutional investors commit €40 million to the Fund. The latest acquisition increases the Fund’s assets under management to €170 million.
In the 18 months since its launch, CESHF II has acquired seven properties comprising nearly 2,000 residential units in five European countries. The Fund offers investors a projected internal rate of return (IRR) of more than 5% per year and a direct income of more than 3.5%. CESHF II succeeds CRIM’s first European Student Housing Fund, which has generated an IRR of more than 6.5% per annum since its launch in 2013 until Q1 2021.
Michael Keune, Managing Director at CRIM, said: “At the beginning of the Covid-19 pandemic we expected student housing values to decline slightly, as did the rest of the market, but this did not happen despite reduced liquidity and lower levels of transactions. Even though most universities are closed at present with online seminars dominating educational programmes, rent collection remains quite high. This is true across all markets, with the exception of the UK which is highly dependent upon international students and has therefore been harder hit by travel restrictions. The resilience of the student accommodation market is illustrated by the fact that all completed assets in the CESHFII fund, for example in Mannheim, Linz, and the new acquisition in Copenhagen, are fully let.”
Denmark - Copenhagen
The 10,226 sqm Telegrafkollegiet is located in Ballerup, Greater Copenhagen, and was originally built in 1971 for commercial purposes. It was comprehensively renovated in 2020 and converted into state-of-the-art student accommodation, designed by the architects 'Over Byen’. The student residence comprises 262 apartments, ranging from 36-54 sqm and each with its own toilet, shower and private kitchen. The basement includes communal facilities such as a laundry and drying rooms, communal kitchens and exercise rooms. The property also has 40 parking units and is linked to district heating with a top-end energy performance certificate.
Alexander Brüning, Fund Manager at CRIM, said: “This new asset is perfectly aligned with our affordable rent strategy. In Denmark, state grants are available to all full-time Danish students participating in a recognised educational programme, and whose income does not exceed a defined amount. Students living independently receive a monthly grant of €840 and in 2019 around 92% of Bachelor undergraduates and 77% of Master students received state payments.”
Ballerup is one of Greater Copenhagen’s leading business municipalities and benefits from good infrastructure in terms of both private and public transportation, with easy access to the centre of Copenhagen and the rest of Zealand province. It is home to a large number of business clusters including CIT and technology, life science, business and finance. Within walking distance of the local rail station, Telegrafkollegiet houses students from as many as 54 different educational institutions, the majority of whom study at the University of Copenhagen, the Danish Technical University (DTU) and CPH Business School. The DTU Campus, Ballerup with around 2,500 full-time and 1,000 part-time students is located nearby and the NEXT Business School is only 850 metres from the student residence.
CBRE advised the seller, the Gefion Group, a specialist residential developer based in Copenhagen.
Thylander Gruppen advised CRIM on the transaction. Frankfurt-based Institutional Investment Partners GmbH (2IP) provides the AIFM platform for CESHF II.
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential fund in 2007 with a volume of more than €1.6 billion and it has since achieved an average net return for investors of 9% per year until the end of Q1 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 close to €5 billion in 10 European countries.
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