The Catella European Residential Fund III has entered the UK market with the acquisition of The Arches, a 184-residential unit Build to Rent development in Leicester, for £32 mln (€37 mln) from developer Watkin Jones.
The scheme was purchased for the Fund by UK-based partner Catella APAM and Berlin-headquartered Catella Residential Investment Management (CRIM).
Opening in August this year, The Arches will offer 101 one-bed and 52 two-bed apartments as well as 31 studios. The apartments, specifically designed for the Build to Rent market, will set a new standard for rental housing in Leicester providing residents with access to a communal garden, co-working space, cinema room, gym, two lounges, cycle storage and car parking with electric charging points available.
Hugh McAleer of Catella APAM, said: ‘This transaction is the first acquisition that Catella APAM has carried out acting as CER III’s investment and asset manager. The Covid-19 pandemic is driving a fundamental shift in traditional living and working patterns. As a result, the high quality and varied communal facilities and outside space incorporated into The Arches will establish a new benchmark for this type of rental accommodation in Leicester.’
Patrick Au Yeung, fund manager for the Catella European Residential Fund III, said: ‘With Catella APAM we have been able to secure our first UK acquisition for the CER III Fund as part of a longer-term strategy to invest in high-quality, well-located, residential assets across the UK. With the acquisition in Leicester in the UK, we’re able to invest already in the seventh country for CER III in less than 2 years. The Fund has a strong pipeline with compelling investment opportunities to act upon in the forthcoming months in order to further grow and diversify the portfolio.’
