Catella invests €140m in German resi portfolio

Catella invests €140m in German resi portfolio

Catella Residential Investment Management GmbH (CRIM) has acquired two German residential developments in Hamburg and Dortmund from property developer Groner Group. 


The 19,268m² Hamburg development was purchased for €120m and is located in the western quarter of Altona, adjacent to the Altonaer Volkspark. The project comprises a total of 289 residential units. Upon completion “Bahrenfelder Carrée” will provide 121 flats, 108 studios, 60 subsidised residential units, four commercial units and 177 car-park spaces. The up-and-coming Bahrenfeld district is home to the world-renowned DESY particle physics centre and Barclaycard Arena and has excellent connections to Hamburg's road network as well as public transport. The commercial space has been let, long-term, to two grocery retailers. The first phase of construction is expected to complete in 2021 and the second phase is scheduled to finish in 2022.


The "Sudtribune" project in Dortmund was acquired for around €22m. It is located on Ruhrallee, close to the popular “Kreuzviertel” district with its wide range of leisure and cultural activities. The property comprises 63 residential units, a retail area and 54 parking spaces. Future residents will benefit from its proximity to the city centre and numerous shopping facilities.


Michael Keune, Managing Director, CRIM, said: “The CER III Fund launched just two years ago into the sweet spot of surging institutional investor appetite for diversified European residential assets with the highest sustainable and societal ESG credentials. The rise of residential at the top of the European real estate sector investment hierarchy has continued unabated through the pandemic as the resilience of the returns from the type of affordable rental properties Catella is targeting and the hedging shield they offer against random extreme ‘Black Swan’ market risks, such as Covid-19 and climate change events, are growing in the awareness of pension funds and insurers.”


Patrick Au Yeung, Fund Manager CER III, said: "Bahrenfelder Carrée will be a notable addition to the neighbourhood, with its broad mix of residential housing and modern design contributing positively to the overall improvement of the area and providing much-needed homes. Its 60 subsidised residential units and construction to the energy-efficient KfW-55 standard, which will include a central ventilation system and ecological building materials, make a positive societal and environmental impact in line with the Fund’s ESG goals.”


Michael Keune, Managing Director of CRIMconcluded"The 'Sudtribune' project is a great example of how to successfully repurpose inner-city properties that have fallen obsolete. The project is being developed above ‘The Bunker’, part of a network of WWII air raid shelters which is still open to visitors today and until 1992 a disaster coordination centre. It forms the cornerstone of a sustainable housing quarter and is part of a wider regeneration scheme that will substantially improve the location’s attractiveness as a residential destination. These two acquisitions have taken the value of the assets under management in CER III to over the half a billion Euros mark, meaning we are well on the way to our mid-term target of €1bn AUM.”

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