Berlin-based Catella Residential Investment Management (CRIM) has purchased two residential properties in Leipzig and Münster for a total of €30 mln on behalf of one of Germany's largest cooperative banks.
This is the first deal within a new €300 mln mandate for CRIM from the bank, which will focus on investments in affordable housing.
Michael Keune, managing director at CRIM, said: 'The new mandate from one of our longstanding clients represents an extension of our existing successful relationship. The investment framework of the mandate also matches our core ESG philosophy, as the huge need for much greater supply of affordable housing to ensure the prosperity and societal fairness of our cities will remain for many years to come.'
The 4,810 m2 Sonnenpark development is located in the Probstheida district of Leipzig, to the southeast of the city centre, and comprises a total of 62 residential units and 66 underground parking spaces across three apartment blocks. Each of the 4,810 m2 buildings will have between 18 and 22 two- to four-bedroom apartments.
The vendor in the Leipzig transaction was Unterplan Baubetreuung, an Austrian developer. BNP Paribas Real Estate acted as advisor.
Leipzig is one of the fastest growing cities in Germany, with its population forecast to rise from 600,000 to 640,000 inhabitants by 2030, and has a structural shortage of mid-range rental accommodation, according to CRIM.
The second acquisition is located in the Gievenbeck district to the west of Münster’s city centre. The 3,873 m2 subsidised housing estate was built in 2002 and comprises six apartment blocks with a total of 54 residential units. The U-shaped development is constructed around a leafy inner courtyard area. The seller of the asset was Bielefeld-based family-owned developer Bautra Group.
Gievenbeck is considered to be Münster’s youngest district in terms of its demographics with the 20-45 age group accounting for an above-average share of the area’s total population. Its popularity with this age group is driven by Gievenbeck’s proximity to the city centre and the university, CRIM said.
