Catella European Residential III acquires properties in Hamburg and Dortmund for around €140 million and increases AUM to more than €500 million in two years
Berlin-based Catella Residential Investment Management GmbH (CRIM) has acquired two residential properties in Hamburg and Dortmund from project developer Gröner Group GmbH on behalf of Catella European Residential Fund III (CER III). The total value of assets and management thus increases to more than €500 million.
The CER III fund has reached the milestone of half a billion euros of AUM within two years, including leverage of around 30-35%, having been launched in 2019 as a Luxembourg-registered SICAV with €50 million in seed capital.
Michael Keune, Managing Director of CRIM, says: “The CER III fund was launched two years ago when institutional investor interest in diversified European residential real estate with the highest sustainable and social ESG criteria grew tremendously. The rise of residential real estate to the top of the European real estate investment hierarchy has continued unabated during the pandemic, as the resilience of returns from affordable rental properties focused on by Catella and the hedge they provide against random, extreme ‘Black Swan’ market risks, such as Covid 19 and climate change events, become more widely recognized by pension funds and insurers.”
Acquired at an investment cost of €120 million, Bahrenfelder Carrée in the western district of Hamburg-Altona will comprise a total of 121 rental apartments, 108 studio apartments and 60 subsidized residential units upon completion, complemented by 177 car parking spaces and five commercial units. The 19,268-square-meter property is located in the up-and-coming district of Bahrenfeld, not far from Altona’s Volkspark, and has excellent connections to Hamburg’s road network and public transportation. Among other things, Bahrenfeld is home to the internationally renowned German Electron Synchrotron DESY and the Barclaycard Arena. In addition to various stores for daily needs, the users of the Carrée have access to two grocery retailers directly on site, which have already signed long-term leases for the commercial space of the property. Completion of the first phase of construction is still planned for 2021 and construction of the second phase is scheduled for completion in 2022.
Yeung, Fund Manager CER III, explains: “Bahrenfelder Carrée will be a tangible asset for the district. The broad mix of apartments and the modern design will contribute significantly to the upgrading of the surrounding area and create urgently needed living space. The 60 subsidized housing units and construction to the energy-efficient KfW-55 standard with central ventilation system and ecological building materials will have a positive social and environmental impact in line with the fund’s ESG goals.”
The “Südtribüne” project, located on Dortmund’s Ruhrallee, with 63 residential units, a retail area and 54 parking spaces, represents the second purchase at an investment volume of €22 million for the CER III portfolio. The future tenants of the residential building will benefit from the proximity to the city center of Dortmund as well as numerous shopping facilities. A wide range of leisure and cultural activities around the popular Kreuzviertel district make the location an extremely popular residential area within the Ruhr region.
Michael Keune, Managing Director of CRIM, adds: “The ‘Südtribüne’ project is a good example of the successful reuse of inner-city land whose original use has become obsolete. The bunker, which is more than 70 years old and now serves as the foundation of a sustainable residential quarter, was successfully subjected to an architectural transformation that sustainably upgrades the residential location. The bunker is part of a network of World War II air raid shelters and remains open to visitors today. These two acquisitions have increased CER III’s assets under management to over half a billion euros, showing that we are well on the way to achieving our medium-term target of 1 billion
Ulf Graichen, Managing Director of Gröner Group GmbH, is pleased: “The trend towards energetically designed, ecologically built and thus long-term usable real estate has accompanied us for years and is a significant incentive for our efforts in all aspects of building. Only buildings that meet these sustainability criteria will be able to meet the expectations of both residents and owners in the future. We are very pleased that with the Bahrenfelder Carrée and the Südtribüne, two very different residential buildings have found their way to Catella, which equally meet our high standards for building and living.”
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential real estate fund in 2007 with a volume of approximately EUR 1.6 billion and has since achieved an average net return for investors of over 9.0% per year until the end of Q2 2021. The team also launched the first specialized European Student Housing Fund in 2013.
CRIM ist eine Tochtergesellschaft der in Stockholm ansässigen Catella AB Gruppe, und ihr Wohnimmobiliengeschäft umfasst Portfoliomanagement, Akquisitionen und Verkauf sowie Assetmanagement. CRIM verwaltet und berät mehrere FoCRIM is a subsidiary of the Stockholm-based Catella AB Group, and its residential real estate business includes portfolio management, acquisitions and sales, and asset management. CRIM manages and advises several funds and mandates with over €5 billion in assets under management in ten European countries.