Bouwfonds Asset Management and Catella Germany have signed a joint-venture agreement to establish a new open-ended pan-European residential fund. The core fund will target institutional investors and very high-net worth individuals in Germany.
Bouwfonds Asset Management and Catella Germany have signed a joint-venture agreement to establish a new open-ended pan-European residential fund. The core fund will target institutional investors and very high-net worth individuals in Germany.
In a statement, the partners said the fund would be the first of its type offering exposure to pan-European residential markets. The fund will target a stable direct annual return of 5% and a total return of 7-8%. 'This is achieved through an investment strategy maximising the diversification potential of highly uncorrelated local residential markets,' Bouwfonds and Catella said. The fund managers will seek to create a Gross Asset Value (GAV) of EUR 1-1.5 bn in 3 years.
The Benelux, France and Germany will make up 90% of the target countries during the first phase of operations. After three years, the fund will also invest in other European countries. 'Each of the target markets presents a favourable demographic, economic and market outlook. Moreover, the lev el of diversification created by the combination of France, Germany and Benelux results in low risk exposure for relatively high expected returns,' Bouwfonds said.
Bouwfonds Asset Management, part of Rabobank, has already launched 12 residential investment funds in Europe and the US, with a total GAV of EUR 2 bn. Last year, Catella created its 'Focus Nordic Cities', a fund focused on Scandinavian countries and the states around the Baltic Sea.
