Catella Residential Investment Management (CRIM) the largest pan-European platform investing in the real estate Living Sector, has acquired a development of 100 apartments and a supermarket in Braunschweig in Lower Saxony, as well as a senior living property in the eastern German city of Dresden, for a total of about €30 million.
The acquistion in Braunschweig is part of a 20,000 sqm new city quarter development on the Berliner Straße / Kurzekampstraße, about 3.5 km northeast of the old centre. The turnkey project consists of three buildings, which will accommodate classic liberalised rental market multi-room apartments and also space-optimised two-room homes, as well as 27 social housing units. All the properties will be fitted-out with high quality interiors and appliances. A leading organic supermarket chain will occupy 750 sqm of the ground floor.
Berlin-based CRIM acquired the Braunschweig project for just under €22 million under a separate mandate for a South German pension plan within its Institutional Investment Partners Fund (2IP). CRIM manages the 2IP portfolio.
Matthias Bursi, Catella Fund Manager European Residential, said: "Catella Residential’s first acquisition in Braunschweig is an extension of our strategy to invest beyond the main European gateway metropolises to other growing cities and regions with solid demographic and economic prospects and attractive risk-return profiles. We have been able to build up a diversified €600 million portfolio across four countries for this institutional client during the last three years.“
In Dresden, Catella Residential has acquired a senior living home with 45 residential units, as well as a commercial property with 2,376 sqm of rental space for €8.4 million. The investment was made under a separate mandate for a south German insurance company in Dresden-Neustadt within the 2IP Fund.
The building, constructed in 2017 on a plot of around 2,000 sqm, is located in the popular Dresden district of Äußere Neustadt, north of the River Elbe and the old town. Good public transport connections and shopping facilities are located within walking distance.
The L-shaped property ranges between three and five floors and offers residents a large roof terrace and a boules court. All units have modern equipment, underfloor heating, floor-level showers, fitted kitchens and a balcony or terrace.
The sellers are private entrepreneurs specialising in the construction and operation of residential real estate for families and senior citizens who have delivered more than 500 apartments in Dresden in recent years.
Michael Keune, Managing Director, CRIM said "We were impressed by the structural quality and the location of the property. It is tailored to the needs of older residents who still wish to take advantage of all the services and cultural attractions that a city like Dresden has to offer. We believe that together with the compact two-room format, this formula will have a strong appeal to the senior living segment of the market.“
About Catella Residential Investment Management GmbH (CRIM)
Catella initiated its first one billion-euro European residential fund in 2007 and this has produced average net returns for investors of 7.9% a year since launch until end-May 2019. The fund was one of the first major real estate investment vehicles to invest in the fast-growing student housing market at an early stage. The first specialised European Student Housing Fund was launched in 2013.
CRIM is a subsidiary of Swedish Catella AB in Stockholm and its residential real estate business includes portfolio management, acquisition and sales and asset management. The company manages and advises several funds and mandates with assets under management of €3.4 billion across nine countries in Europe.