Catella to launch first Luxembourg based European Residential Fund
Berlin, 08. März 2019 – Berlin-based Catella Residential Investment Management GmbH (CRIM) today announced the launch of its third European Residential Fund for international clients. The fund will be Luxembourg SICAV-RAIF. The objective of this open-ended Pan-European Residential fund is to build up a diversified residential real estate portfolio in Europe. The targeted volume of the fund is 1 billion EUR.
- First Catella Luxembourg based Residential fund for international institutional investors
- Targeted volume of the fund is 1 bn EUR and target yields of net 5-6%
- The portfolio will be seeded by a leading German pension fund with 50-100 million
Broadly diversified European residential portfolio
The focus will be on modern and affordable apartments with a stable cash flow, as well as on new developments and/or properties in growing market segments such as student housing, young professionals and senior housing apartments. In times of increased land and construction costs, it is important to make affordable and flexible housing available to young professionals, too, with modern and compact apartments. The fund will target institutional investors, such as pension funds, foundations, funds of funds and other professional investors. The fund will invest in selected growth regions in Germany, the BeNeLux, France and the Nordics, as well as up to 50% in Spain, Poland and other European countries with strong economic areas.
Catella implemented the insights from Nassim Taleb’s Antifragility Research for residential assets, as well-developed risk management is key nowadays. Based on this research we can better manage the risks of residential real estate, which is essential in this part of the cycle, according to Xavier Jongen, Managing Director Catella Residential Investment Management GmbH. The investment strategy aims at long-term stable returns with minimized risk through the high diversification potential of the locally non-correlated residential real estate markets. Besides this research we are also using local ripple effects with the investment strategy to better react on market situations.
Strong European track record
As a leading European residential manager Catella European Residential has successfully expanded its investment portfolios in recent years and launched its first billion EUR fund already in 2007 with net returns for the investors of 7.8% p.a. (since launch until end of January 2019). Since the fund was launched more than 10 years ago, it was systematically invested in prosperous economic regions and picked up on the trend of student housing at an early stage. The Team can also leverage on the build-up expertise of the first European Student Housing Fund, which was launched in 2013.
The launch of this new fund is part of Catella’s new European strategy. By combining Catella’s experience in international residential markets and expertise in residential (re)developments, with the knowledge of the local teams and their understanding of the local customers, Catella is confident that this new strategy will lead to an even stronger European organization and will be able to better serve its international clients. This new fund will also strenghten Catella’s European Residential platform across 9 countries.
About Catella Residential Investment Management GmbH
Catella Residential Investment Management GmbH (CRIM) is a subsidiary of the Swedish Catella AB, Stockholm and advises real estate funds and manages all performance-related topics. As an investment manager specializing in the residential segment, this primarily includes portfolio management, acquisition and real estate sales and asset management. The CRIM currently manages and advises several funds and mandates with assets of more than € 3 billion under management and / or assets under management distributed across 9 countries in Europe.
Lisette van der Ham
Head of PR & Corporate Communications
Catella Residential Investment Management GmbH
Upper West, Kantstraße 164,
M: +31 (0)6 83200561
Catella is a leading specialist in property investments and fund management, with operations in 15 countries. The group has assets under management of approximately EUR 18 billion. Catella is listed on Nasdaq Stockholm in the Mid Cap segment. Read more online at catella.com.