Berlin-based Catella Residential Investment Management (CRIM) has secured additional capital commitments totalling €185 million from three new German pension fund clients, including NAEV, the retirement plan for medical professionals in the federal state of North Rhine-Westphalia, for its Catella European Residential III fund (CER III). Total commitments for the CER III Fund since its launch in 2019 have now reached €475 million, of which €365 million was raised in the last 12 months during the Covid-19 pandemic.
Michael Fink, Managing Director, CRIM, said: “We are welcoming three new German pension funds into CER III as it transitions to ‘Impact Fund’ status in the next few months under the EU’s ‘Green Deal’ regulations and we anticipate that together with our partner for international clients, CBRE Capital Advisors, we will soon be able to disclose the participation of more first-time investors. These institutional investors recognise the increasing importance of incorporating sustainability and innovation, in combination with affordable rental homes, in their residential real estate investment strategies. We believe Catella is leading the field in Europe in integrating the core ESG components of residential portfolio construction in the fight against Climate Change and social inequality.”
The CER III Fund is expected to complete another €100 million of transactions in coming weeks and has more than €300 million of deals in its forward investment pipeline across Europe. The Fund is now well on its way to achieving its mid-term investment target of €1 billion of assets under management and establishing a multi-billion open-ended investment vehicle across European residential real estate markets for German and international institutional investors. The next closing is planned for the second quarter of 2021. CER III will be reclassified as an Article 9 ‘Dark Green’ Impact Fund under the taxonomy of the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Xavier Jongen, Managing Director CRIM, added:“In early April, we announced that Catella’s CER III Fund had acquired in France the first in a planned €2.0 billion investment programme of 100 ‘energy-positive’ Elithis residential towers across Europe. They represent a radical break from traditional mainstream investment risk models that are not fit for purpose in meeting the climatic and societal challenges that lie ahead, towards the concept of ‘anti-fragility’ or ‘Black Swan tail risk’ investing. This is a global first in real estate investment and it is occurring in the largest and most scalable asset class of all –residential property, which is bigger than all equities and fixed income markets combined.”
CER III currently has 13 assets located across six European countries. Its strategy is to invest in core European countries including Germany, the Benelux, France, Austria and the Nordics, as well as Spain, Poland and the UK. The Fund is targeting modern, affordable residential properties, including new developments, which provide stable cash flow and offer long-term value growth. Investments include modern living formats such as housing for seniors and students. CRIM’s partner for international client relations is CBRE Capital Advisors, which advised on the latest funding round.
Part of the €4.8 billion Catella Residential Platform, CRIM also manages two further pan-European residential funds, the Catella European Residential Fund with €1.6 billion of AUM, and Catella Wohnen Europa with €1 billion of AUM, on behalf of German institutional investors.
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential fund in 2007 with a volume of close to €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 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