Catella holds fourth equity closing for sustainability fund
Following the successful completion of the development of its project in Brussels, which was acquired in 2012, and of a forward purchase transaction in Munich, the "Sarasin Sustainable Properties - European Cities" fund, which is managed jointly by Catella and Bank J. Safra Sarasin AG, intends to raise additional equity from institutional investors as part of the fourth closing.
Catella Real Estate AG Kapitalanlagegesellschaft has successfully completed the refurbishment of the "Princess Center" project in Brussels and the "Schwabinger Carré" in Munich for the first open-ended real estate fund with a sustainability focus. As part of the fourth closing, it has now begun to raise additional equity from institutional investors.
The fund was launched at the end of 2011 as a special fund under the German Investment Act. It currently manages gross real estate assets worth around EUR 200 million. It invests in sustainable properties in major European cities with good growth prospects. The cities are selected according to the real estate market cycle as well as their long-term socio-economic attractiveness. Each building has to meet the strict sustainability standards of Bank J. Safra Sarasin – both at the time of purchase and over the life cycle of the property. The fund aims to generate a target distribution yield of between 3.5% and 4.5% from rental income. The yield of 4% generated in the full 2012/2013 financial year was within the target range. The long-term target investment return (including value increases) is 4.5% to 5.5%.
The "Princess Center" project in Brussels was acquired in summer 2012; it has 5,300 sqm of leasable space and is located in the heart of the city, in the direct vicinity of the Place de la Monnaie and the famous shopping street, Rue Neuve. In its role as building client, Catella Real Estate took on and completed the project management of the comprehensive refurbishment of the property. Once the certification process has been concluded, the building will be given the BREEAM very good rating.
In addition, in June 2013, the office property "Schwabinger Carré" in Munich was acquired from the Investa real estate group as part of a forward purchase by the two special funds, "Immo-Spezial – Wirtschaftsregion Süddeutschland" and "Sarasin Sustainable Properties – European Cities". Following its complete refurbishment, the property was accepted and handed over at the end of March. The property's long-term anchor tenant is the Free State of Bavaria. After completion, the building will be awarded the LEED Gold certificate; it also has achieved an above-average rating in Bank J. Safra Sarasin's sustainability analysis.
"By expanding the sustainability fund we are hitting the right note with institutional investors, who are increasingly on the lookout in particular for sustainable properties. We are therefore planning to increase the portfolio in stages during the current year", comments portfolio manager Nicolas Hartel.
Founded in 2007, Catella Real Estate AG Kapitalanlagegesellschaft sets up and manages real estate funds totalling more than EUR 1.9 billion. You can read more about Catella Real Estate AG KAG at www.catella-realestate.de. The company is part of the Catella Group.
For more information, please contact:
Nicolas Hartel
Portfolio Manager
+49 89 189 16 65-26
nicolas.hartel@catella.de
Press contact:
Nadine Kratzer
Business Development
+49 89 189 16 65-44
nadine.kratzer@catella.de
About Catella: Catella is an independent financial advisor and asset manager. We have operations in 12 European countries and 430 employees. Catella has a strong offering in financial services through its business breadth, geographical coverage and leading position in the property sector. Catella is listed on Nasdaq OMX First North Premier. Read more about Catella at www.catella.com.
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