Bouwfonds Asset Management and Catella Real Estate AG have acquired, in Hamburg, for the mutual Bouwfonds European Residential, a residential property with 245 units and 16,600 m² floor space for €19.7 million.
Furthermore, the fund signed a preliminary purchase agreement for the acquisition of an under construction residential property in Ville-la-Grand, France near the Swiss border, located only 10 kilometers from the city center of Geneva. The residential complex consists of 45 residential units, a floor space of 2,740 m² and 60 parking units.
In the last few years, the dynamism of the city of Geneva and the opening of the Swiss employment market to European citizens led thousands of French nationals to relocate close to the border to seek high-wage employment in Geneva. This relocation trend had and continues to have an important impact on the nearby French real estate market. With this investment, the Bouwfonds European Residential wants to take advantage of the resulting supply shortages and rising prices in the region.
The Bouwfonds European Residential Fund had a positive net third party capital inflow in the last 15 days and does not face liquidity issues. This underlines investors' willingness to capitalise on the diversification benefits of residential when compared to commercial property. As a result, further acquisitions are in process in France, Germany, Belgium, and the Czech Republic, some of which are expected to be completed before year-end. Also, the base case fund performance forecast is maintained above the 6% BVI return target.
Primarily targeted towards German institutional investors and high net worth individuals, the fund target Gross Asset Value (GAV) is €1-1.5 billion in three to five years. The portfolio focuses on core middle-class family apartments and houses in city center locations, residential suburbs, and satellite cities of major agglomerations. It can also include other residential investment opportunities such as senior housing, student housing or furnished apartments. Acquisitions will consist of new developments, existing real estate, and redevelopment projects.
With the introduction of the Bouwfonds European Residential Fund, Bouwfonds aims at further strengthening its position as an important and responsible player in local European residential markets.
Source: Catella Property Group