The Catella European Residential Fund III, launched in March 2019, has completed its first close and secured a maiden investment in Copenhagen, passing initial milestones towards a target €1.0bn total investment volume. The fund, managed by Berlin-based Catella Residential Investment Management (CRIM), is the first Luxembourg-based pan-European vehicle allowing international investors access to a geographically diversified portfolio of assets in the residential sector. The two earlier CRIM funds were structured for German institutional investors. The first close of €50m consisted of seed capital from a large German pension fund. The fund has also made its debut purchase by investing €42m in the 83-apartment scheme at Fillippahaven in the Valby district of Copenhagen, Denmark.
Michael Fink, Managing Director at CRIM, said: “Residential real estate investment has been growing very rapidly and apartments overtook retail as the second largest property sector after offices in Europe in the second half of last year. International institutional investors have a strong appetite for the stable long-term rental income flows that residential has to offer and that is available in our new fund. There is no other specialised investment manager that can provide the same extensive geographically diversified platform as Catella. Residential investing has gone cross-border and our teams are there on the ground to manage these assets across nine major markets.”