Catella Residential Investment Management’s (CRIM) second pan-European student housing fund has raised €100m at first close.

Catella European Student Housing Fund II (CESHF II) is expected to invest up to €250m across European markets in the next two years.

CESHF II’s second close is planned for the first quarter of 2020.

The Berlin-based manager said the fund’s first acquisition is a €38m apartment building in the German city of Mannheim from P+B Planen + Bauen.

Michael Keune, managing director, CRIM, said Education is a global growth market and the market for student housing in Europe is extremely strong.

”High demand is particularly being driven by the expansion of English-taught degree programmes in European universities, which are attracting international students in rapidly increasing numbers.

“The supply of purpose-built student housing is failing to keep pace with this demand, so young people still find it as hard to find a place to live in accommodation catering specifically to their needs as they did 10 years ago. “

CRIM said CESHF II is expected to aggregate a broadly diversified portfolio of around 20 properties within the next two years.

The predecessor fund, which was launched in 2013, now manages 40 properties with over 9,000 apartments in 30 locations across Europe, worth €900m.