Berlin-based Catella Residential Investment Management (CRIM) has acquired two German residential developments in Hamburg and Dortmund from property developer Gröner Group on behalf of the Catella European Residential Fund III (CER III), bringing the total value of the fund’s assets under management to more than €500 mln.
The CER III fund passed the half billion Euro AUM milestone, including approximately 30-35% leverage, within two years, after launching as a SICAV Luxembourg-registered investment vehicle with €50 mln in seed capital in 2019.
Michael Keune, managing director, CRIM said: 'The CER III fund launched just two years ago into the sweet spot of surging institutional investor appetite for diversified European residential assets with the highest sustainable and societal ESG credentials.
'The rise of residential at the top of the European real estate sector investment hierarchy has continued unabated through the pandemic as the resilience of the returns from the type of affordable rental properties Catella is targeting and the hedging shield they offer against random extreme ‘Black Swan’ market risks, such as Covid-19 and climate change events, are growing in the awareness of pension funds and insurers.'
The 19,268 m2 Hamburg development was purchased for €120 mln and is located in the western quarter of Altona, adjacent to the Altonaer Volkspark. The project comprises a total of 289 residential units. Upon completion, Bahrenfelder Carrée will provide 121 flats, 108 studios, 60 subsidised residential units, four commercial units and 177 car-park spaces.
The commercial space has been let, long-term, to two grocery retailers. The first phase of construction is expected to complete in 2021 and the second phase is scheduled to finish in 2022.
The Südtribüne project in Dortmund was acquired for around €22 mln. It is located on Ruhrallee, close to the popular Kreuzviertel district. The property comprises 63 residential units, a retail area and 54 parking spaces.
Michael Keune, Managing Director of CRIM, concluded: 'These two acquisitions have taken the value of the assets under management in CER III to over the half a billion Euros mark, meaning we are well on the way to our mid-term target of €1 bn AUM.'
