Berlin-based investment manager Catella Residential Investment Management GmbH (CRIM), focused exclusively on residential assets, has acquired two project developments for the Catella Wohnen Europa investment fund: one in Bremen, Germany, and the other in Aarhus, Denmark. The total purchase price of the 25,000m² portfolio was around €88.6m.
“The two acquisitions will allow us to further diversify our existing portfolio. In terms of residential property, Aarhus and Bremen are core markets, given that their population sizes are predicted to increase long-term and demand already significantly exceeds supply. Accordingly, the investments are a perfect fit for our broad-based portfolio”, says Benjamin Rüther, Deputy Fund Manager at Catella.
A micro flat complex with 215 units and total residential space of around 12,470m² was acquired in the Hanseatic City of Bremen. A high-spec building, currently under construction by a company in the Zech Group, is expected to be completed and handed over to its future tenant, the City of Bremen, in March 2018. The city has entered into a 10-year double-net lease with an option to extend for five more years. The purchase price is c. €35.5m.
The development is located in a close proximity to the university in the north-east of the city and benefits from excellent public transport links.
A project development measuring c. 13,000m² with a total of 162 residential units was acquired in Aarhus, the second-largest city in Denmark. Unit areas range between 56 and 117m² and completion is expected before the end of this year. The purchase price is around €53.1m.
The project is located in one of five new districts in the city that have been earmarked for development. The city’s population, currently around 340,000, is expected to grow by another 10 percent by 2025. Aarhus is home to some 58,000 students and 125,000 people under the age of 25.