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2020-04-21 9:12 CET, Europe, Germany | Investment Management | Press release

Catella European Residential Fund III Lifts Capital Commitments by €125 Million With New Dutch and German Investors

Berlin-based Catella Residential Investment Management’s (‘CRIM’) CER III Fund has received €125 million from two new institutional investors; €100 million from a large Dutch pension fund and €25 million from a leading German fund manager, bringing its total capital commitments to €235 million. These latest commitments bring the Fund closer to its mid-term target of €1 billion in assets under management on the way to establishing a multi-billion open-ended investment vehicle across European residential real estate markets. The successful double-signing follows a first close in May 2019 when CRIM’s maiden pan-European residential fund opened to international investors. CRIM already manages the €1.5 billion Catella European Residential Fund and €900 million Catella Wohnen Europa Fund open to German investors in comparable strategies.

Catella European Residential Fund III now has four institutional investors across Europe after attracting its first commitment from outside Germany in October last year with €40 million from France’s Primonial REIM. The initial launch was seeded by a €50 million commitment from a German pension plan, which subsequently made a top-up of €20 million. Primonial REIM is one of Europe’s leading third-party real estate investment management companies for institutional and private investors, with around €19 billion in total assets under management. 

Michael Fink, Managing Director, CRIM, said:Demand for affordable and highly sustainable rental housing will be greater than ever after the Covid-19 crisis passes and we continue to see very strong interest from both German and international investors for our cash flow-focused residential investment vehicles. Residential assets are already proving to be the most defensive and resilient among property sectors as the European  economic recession deepens. Catella’s research and risk models take these downside scenarios into account when constructing portfolio compositions. The CER III fund’s Luxembourg-based structure also provides international investors with easy access to Catella’s platform, which is the largest and most geographically diverse across European markets. We anticipate that we will be able to announce further new investors alongside our new Dutch and German clients in the near future.” 

Casper van Grieken, Head of Equity Placement at CBRE Netherlands, the placementagent for the CER III Fund, said: “Amid the huge uncertainties stemming from the coronavirus pandemic, Catella has succeeded in adding two more heavyweight investors to its stable. It is quite a feat to secure transactions in the current environment and this achievement is clearly an endorsement of the quality and track record of Catella’s residential platform and strong ability to source attractive investments across Europe.”

CER III focuses on affordable housing assets and Catella also integrates robust sustainability principles within the investment process in its contribution to the fight against global climate change. Catella has an investment pipeline of more than €250 million – mainly standing investments – in markets including Denmark, Finland, the Netherlands, Belgium, Germany and France. The Fund already comprises investments in four European countries since its first closing in mid-2019 and its first €42 million acquisition in June 2019 was an asset comprising 83 apartments at Fillippahaven in the Valby district of Copenhagen. At the end of 2019, the Fund subsequently acquired three residential projects in Germany and the Netherlands for approximately €65 million, taking total investment volume to more than €100 million. Each of the properties is situated close to leading business centres in the German cities of Berlin and Munich, and the southern Dutch town of Helmond. The fifth asset in the south-east of France is in its final closing stage.

CER III’s strategy is to invest in selected growth regions in Germany, the Benelux, France, Austria and the Nordics, as well as up to 50% of the portfolio in Spain, Poland, the UK and other European countries. The Fund is targeting modern and affordable residential properties, including new developments, providing stable cash flow and long-term value growth. Investments include modern living formats such as senior living, student housing and serviced apartments.

ENDS

 

About Catella Residential Investment Management GmbH (CRIM)

Catella initiated its first one billion-euro European residential fund in 2007 and this has produced average net returns for investors of 8.5% a year since launch until end-Q1 2020. The Team also launched the first specialised European Student Housing Fund in 2013.

CRIM is a subsidiary of Swedish Catella AB in Stockholm and its residential real estate business includes portfolio management, acquisition and sales and asset management. CRIM manages and advises several funds and mandates with assets under management of c. €4 billion across nine countries in Europe.

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
E: lisette.vanderham@catella-investment.com
W: https://www.catella.com/immobilienfonds