Catella and Kriton establish asset management company
Catella and Kriton Immobilien GmbH have jointly established the asset management company “Catella Asset Management” (CAM). This is in response to growing demand for advisory services in professional real estate management for national and international investors. The new company will thus offer its extensive expertise also to third parties in the German market for the first time.
Catella Asset Management operates in the market as a professional asset management services provider, focusing on office and retail properties as well as buildings earmarked for conversion into residential properties. The emphasis is on properties with potential value-add. The aim is to leverage the long-term earnings potential of properties located in Germany’s high-growth regions through active asset management and to unlock this potential for investors.
Henrik Fillibeck, member of the Managing Board of Catella Real Estate AG, explains the decision to establish a separate asset management company: “Kriton has specialised experience in identifying and leveraging the value-add potential of real estate. During the current market phase, high national and international demand for properties in the core segment with fixed long-term rentals has led to a price situation where the risk-return profile of properties with asset management potential is becoming increasingly more attractive. Not only does a regional presence with local expertise offer the opportunity to generate higher returns, it also increases investment security, because the value-add potential is leveraged at the outset for a foreseeable period. In this context, manage-to-core prospects unlock the potential to realise increases in value quickly. A service for third parties is that management fees generate regular income while profit sharing provides performance-related incentives.”
“In Catella, Kriton has joined forces with an experienced partner with international activities with whom major single investments as well as large portfolio deals can be realized,” says Andreas Hauff, one of the Managing Directors at Kriton. “Catella supports our approach of applying proactive management, especially for investors without operational activities, by remodelling distressed properties, enhancing their rental potential and reselling them at a profit within a short to medium-term horizon.”
Catella Asset Management will be headed by Andreas Hauff and Nicolas Hartel. A joint team of specialists from both founding companies will look after all investor interests in future.
Catella has been operating in the professional real estate market for more than 30 years and has made its name as an investor by specialising in niche segments. Catella, which has around EUR 5.6 billion in real estate assets under management, has activities in 14 countries.
Kriton has been an independent real estate investment manager in Germany for the past 10 years. With current assets under management of around EUR 430 million, the Munich-based company has positioned itself in the market as a full-service provider, specifically for institutional investors and wealthy private investors. Through its activities, Kriton has realised value add investments with IRR returns clearly in the double-digit percentage range in the past five years.
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Catella is a leading specialist in property investments, fund management and banking, with operations in 13 European countries. The group has sales of approximately EUR 200 million and manages assets of approximately EUR 17 billion. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more at catella.com.