Swiss private bank Sarasin and the fund management arm of Swedish property services firm Catella are setting up their first joint fund for institutional investors that will invest solely in environmentally sustainable buildings in high-growth European cities.
Swiss private bank Sarasin and the fund management arm of Swedish property services firm Catella are setting up their first joint fund for institutional investors that will invest solely in environmentally sustainable buildings in high-growth European cities.
The Sarasin Sustainable Properties - European Cities fund will initially focus on Germany, France and the Nordics and invest mainly in office and retail properties. Up to 25% of the fund may be invested in residential buildings.
The fund will target properties of between EUR 10 mln and EUR 35 mln for a total fund volume of EUR 500 mln. Initially, only existing buildings will be acquired, with development projects following at a later stage. The fund aims to achieve an annual return of 5 - 5.5%.
The fund offering is directed primarily at Swiss pension funds via a German special fund vehicle. Many Swiss pension funds seeking to increase their exposure to real estate are being restricted in their growth ambitions by the limited number of domestic investment opportunities, Catella said. As a result, they are keen to diversify abroad.
Catella said the fund is the first joint venture between a Swiss private bank and a German fund management company based on German investment law.
Catella Real Estate was founded in 2007 and manages real estate funds totalling over EUR 1 bn.
