Norway’s municipal and public health sector occupational pension company KLP, the country’s largest, and a group of Institutional investors, have committed close to €100 million to the first closing of the Catella Elithis Energy Positive Fund (CEEPF).
Managed by Berlin-based Catella Residential Investment Management, CEEPF is the world’s first real estate investment vehicle to focus exclusively on residential developments which produce more energy from renewable sources than consumed by the buildings and their tenants. This Impact Fund is targeting a total asset volume of €500 million to invest in these pioneering ‘energy positive’ towers and sites have already been agreed with local authorities for the French cities of Mulhouse, Brest, Le Havre, Nancy and Bordeaux.
CEEPF is -also like Catella’s European Residential Fund III- structured around Nassim Taleb’s pioneering antifragile investing concept of Black Swan extreme random tail risk events and the alignment of stakeholder interests through the manager’s ‘skin in the game.’
Michael Fink, Managing Director, CRIM, said: “We are delighted to welcome KLP and other institutional Investors who have joined us on our mission to lead the sustainable transformation of our cities. We have high expectations of our Elithis Towers which we are developing in partnership with French sustainable building engineering and real estate developer Elithis Groupe. These towers outperform the EU’s 2050 net carbon zero target operationally by using bioclimatic design and technologies which render them energy positive from the start and they can be built at standard market construction costs. We can offer with CEEPF a viable ESG investment solution for two of the greatest crises of our times, climate change and widening social inequality, as households increasingly come up pressure from the soaring cost of living, particularly in residential rents and high energy prices.”
The residents of the Elithis Towers can benefit from a substantial reduction or complete elimination of their household energy bills, which makes effective apartment rents more affordable than comparable homes in the neighbourhood -- around 5% to 10% lower on average.
Andreas L. Farberg, Investment Manager Global Real Estate at KLP, Norway’s pension company for local government and healthcare sectors, added: “We see CEEPF as one of the most ambitious strategies in Europe to address both climate change and the need for good quality affordable housing. In the years to come, we look forward to following the CEEPF team in their work to create positive impact and deliver a competitive risk-adjusted financial return. Through our work with CEEPF, and our investment in Catella European Residential Fund III, CRIM has shown alignment with KLP’s dedication to corporate responsibility, which we find encouraging.”
Casper van Grieken, Executive Director, CBRE Netherland – Head of Capital Advisors, concluded: “We are super proud of this truly unique impact proposition. The Elithis Fund combines performance in terms of both environmental and social impact. The buildings deliver operational carbon neutrality and effective affordable rents through the reduction and even elimination of domestic energy bills, thereby increasing each household’s annual purchasing power. This is particularly relevant at a time of soaring energy prices in Europe.”
CBRE Capital Advisors are mandated to advise on fundraising from international investors.
Interview about the Catella Elithis Energy Positive Fund: https://www.youtube.com/watch?v=zpOiRRNL_Hc&t=16s
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential fund in 2007.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 €7.5 billion across 10 European countries.
About CBRE Capital Advisors
CBRE Capital Advisors works closely with real estate managers and investors as corporate finance advisor with a background in the commercial real estate market. The team, consisting of international experts, are skilled to support and assist in preparing and completing transactions and to provide real estate professionals with strategic and tactical advice for all indirect property investment queries, including topics as property funds, joint ventures or club deals, or related strategic organizational questions.
CBRE Capital Advisors B.V. is licensed by the Authority for Financial Markets (AFM) and acts as placement agent to raise international capital for CERIII and CEEPF outside of Germany.
For more information, please contact:
Catella Residential Investment Management GmbH
Head of Marketing and PR European Residential
Office: +49 (0)30 887 285 29 76
Mobile: +49 (0)151 544 51 005
stine.zoechling[ at ]catella-residential.com
This is a marketing release. It is for information purposes only and does not constitute investment advice, an investment recommendation, an offer or an invitation to buy or sell investment products. The information is not suitable for making a concrete investment decision on its basis. It does not contain any legal or tax advice. The provision of the information does not create any contractual obligation or any other liability towards the recipient or third parties. Shares may only be purchased on the basis of the currently valid Terms and Conditions of Investment in conjunction with the currently valid Sales Prospectus.
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