BNP Paribas REIM and a number of German Institutional Investors, mainly pension funds, have committed €200 mln to the latest closing of the Catella European Residential III Fund, one of Europe’s largest cross-border residential investment vehicles, taking its total capital raised to more than €1.2 bn.
CER III is managed by Berlin-based Catella Residential Investment Management (CRIM) and has a diversified portfolio of investments encompassing around 30 residential properties in seven countries across Europe.
Michael Fink, managing director, CRIM, said: 'At a time of elevated market uncertainty and volatility the need for ‘dual materiality,’ or the combined objectives of achieving climate mitigation and societal returns alongside financial targets is getting even more important in investments.
'CER III has a focus on the ‘decarbonization transition’ in its residential investments and we are also strongly targeting affordable rents. Catella’s ‘skin in the game,’ or alignment of interests between us and the investors through the fee structure of the Fund, also reinforces the third ESG pillar – the ‘G’ for governance.'
CER III, as an Article 9 impact fund, integrates in its mandate the significant reduction of greenhouse gas emissions from its properties and also the incorporation of sustainable societal objectives in its investments.
On Governance, a penalty clause included in CER III’s management agreement means CRIM will donate part of its recurring management fee to a relevant impact-related United Nations charity should the manager fail to meet the financial, environmental, or societal objectives set for the fund.
Casper van Grieken, executive director, CBRE Netherlands - head of capital advisors, concluded: 'The world is in a profound transition due to climate change, mounting geopolitical and economic risks and soaring energy costs, which are creating enormous challenges for societies, governments, and investors to manage.
'These are on top of the longstanding problems of Europe’s structural housing shortage, which is contributing to limited affordable rental accommodation supply. The latest successful EUR 200 million capital raise for the CER III fund, demonstrates its attraction for institutional investors with high ESG impact investing standards.'
CBRE Capital Advisors are mandated to advise on fundraising from international investors.
