Munich-based investment manager Catella Real Estate has advised a southern German institution on the acquisition of a residential scheme in Leipzig for €51 mln.
The project development, dubbed Naumannsche Brauerei, will have 182 residential units and four retail units across a total of 15,590 m2. The purchase yield was above 4%, according to Catella.
'Leipzig has been a showcase for urban development since German reunification. The city has regained its former importance for national and international investors,' commented Michael Keune, portfolio manager at Catella.'From an investment point of view, we were particularly interested in the positive demographic trend, which has persisted for over 15 years and is being tracked by rental performance. In combination with an attractive yield and good performance prospects and catch-up potential, those were the main factors in our decision,' he added.
The purchase was made for a southern German institution's special fund, which is managed by local player Institutional Investment Partner. Catella performs the portfolio management in the residential segment of the fund.
'The acquisition fits for our investment profile in core German and European markets in the affordable living space segment. Our European residential team has already invested €450 mln this year and with further mandates of €500 mln to be invested in our pan-European funds by the end of next year,' said Xavier Jongen, head of Catella’s residential fund division.
