The Catella European Residential III Fund has acquired a recently developed standing asset of 235 residential apartments in Madrid for c. €60m — it’s first investment in the Spanish market -raising CER III’s total assets under management over €900m.
Catella Investment Management (CIM) is the manager of the CER III Fund and partnered with Catella Asset Management Iberia (Catella AM Iberia) to close the transaction. Catella AM Iberia is also the asset manager for the property.
The building is located in the Villa de Vallecas district to the southeast of central Madrid, and comprises 235 rental apartments extending over 19,198m2 of living space and two commercial units. The development was completed in Q1 2024.
Eduardo Guardiola, Managing Director of Catella AM Iberia, said: “Villa de Vallecas is a very popular neighbourhood close to the centre of Madrid with strong population growth and this is reflected in the robust demand for the affordable rental apartments in Catella’s latest acquisition, which is almost fully let. The location has good social infrastructure, such as public and private schools, supermarkets, restaurants and sports facilities, as well as public transport connections, within a ten-minute walk.”
The property has 50 three-room, 115 two-room, and 70 one-room apartments, all with high-quality fittings, electric external blinds and air conditioning. There are 264 car and 34 motorcycle parking spaces and 235 storage rooms. The communal areas include co-working spaces and a gym, as well as green recreational spaces with a swimming pool, a children's playground and a picnic area.
Michael Keune, Managing Director at CIM, said: “The Catella European Residential III Fund invests in modern residential property in European growth regions, with a focus on Germany, the Netherlands, France and Scandinavia. The residential building in Madrid is the first property in Spain that we have acquired for the Fund, further increasing the geographical diversification of its portfolio, now across nine European countries.”
CER III is regulated in accordance with Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR). All properties included in the fund must be ESG-compliant and are subject to comprehensive ESG due diligence prior to purchase. The residential building acquired in Madrid is certified as ‘Very Good’ under the BREEAM sustainability rating and achieves the top A/A rating in the EPC rating — which assesses the energy efficiency and CO2 emissions of buildings. The technical systems, such as heating, cooling and ventilation, are not fuelled by oil or gas, but are operated entirely by electricity. Some of this electricity comes from the photovoltaic system on the roof.
Image source - Catella Investment Management.
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