Berlin-based Catella Residential Investment Management (CRIM) has purchased two residential properties in Leipzig and Münster for overall €30 million on behalf of one of Germany's largest cooperative banks. This is the first deal within a new €300 million mandate for CRIM from the bank, which will focus on investments in affordable housing.
Michael Keune, Managing Director at CRIM, said: “The new mandate from one of our longstanding clients represents an extension of our existing successful relationship. The investment framework of the mandate also matches our core ESG philosophy, as the huge need for much greater supply of affordable housing to ensure the prosperity and societal fairness of our cities will remain for many years to come.”
The 4,810 sqm ‘Sonnenpark’ development is located in the Probstheida district of Leizig, to the southeast of the city centre, and comprises a total of 62 residential units and 66 underground parking spaces across three apartment blocks. Each of the 4,810 sqm buildings will have between 18 and 22 two- to four-bedroom apartments featuring high-quality fittings such as floor heating, parquet flooring and electric shutters. A two-bedroom flat will start at a gross rent of around €600 per month with three-bedroom apartments priced at around €925 per month. The apartments are expected to appeal to a wide variety of potential tenants due to their functional and compact floor layouts and mid-range rental levels.
Leipzig is one of the fastest growing cities in Germany, with its population forecast to rise from 600,000 to 640,000 inhabitants by 2030, and has a structural shortage of mid-range rental accommodation. As eastern Germany’s leading city it is home to a number of major German companies including BMW, Porsche, Bayer and DHL, as well as US concerns DOW and Amazon.
The vendor in the Leipzig transaction was Unterplan Baubetreuung GmbH, an Austrian developer. BNP Paribas Real Estate acted as advisor.
The second acquisition is located in the Gievenbeck district to the west of Münster’s city centre. The 3,873 sqm subsidised housing estate was built in 2002 and comprises six apartment blocks with a total of 54 residential units. The U-shaped development is constructed around a leafy inner courtyard area. The seller of the asset was Bielefeld-based family-owned developer Bautra Group.
Gievenbeck is considered to be Münster’s ‘youngest’ district in terms of its demographics with the 20-45 age group accounting for an above-average share of the area’s total population. Its popularity with this age group is driven by Gievenbeck’s proximity to the city centre and the university. The district also has good access to public transport and an ample supply of convenience stores and supermarkets.
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential fund in 2007 with a volume of €1.5 billion and it has since achieved an average net return for investors of 9.0% per year until the end of Q4 2020. 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 €4.4 billion across 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, 10623 Berlin
M: +31 (0)6 83200561