Berlin-based Catella Investment Management GmbH has completed a major acquisition in Germany's residential sector, securing two newly-built properties containing 154 modern apartments in Hanover for more than €50m. The strategic purchase, executed through the Catella European Residential fund and an individual mandate, signals continued institutional appetite for German residential assets despite ongoing market volatility.
The transaction, facilitated by Catella Real Estate AG as KVG platform, acquired the Kronsrode development from PHI Kronsrode Grundstücks GmbH. The 12,060m² complex features a compelling mix of 102 privately financed and 52 subsidised apartments, alongside six commercial units and a daycare centre, all built to KfW-55 energy efficiency standards. Notably, the development includes 148 parking spaces and extensive e-bike charging infrastructure, positioning it advantageously for the growing electric mobility trend.
"The funds are investing in an efficient building structure with attractive floor plans in a green, family-friendly district with a high quality of life for many people in the Hanover growth region," explained Michael Keune, Managing Director of Catella Investment Management.
The acquisition demonstrates sophisticated portfolio construction, with the social housing component providing rental income stability through government backing, whilst the private units offer market-rate returns. This dual-income stream structure is increasingly attractive to institutional investors seeking defensive assets with inflation-hedging characteristics, particularly as German residential rents continue their upward trajectory.
Benjamin Rüther, Head of Fund Management Residential at Catella Investment Management, emphasised the location's strategic value: "The project in Kronsrode convinces with excellent connections to the city centre and an efficient public infrastructure consisting of daycare centres, schools, restaurants and good local amenities. The proportion of social housing promotes the neighbourhood's social mix and cohesion."
The development's ESG credentials, including district heating systems and sustainable mobility features, align with the growing institutional focus on environmental compliance. With the Catella European Residential fund's assets now totalling approximately €1.385bn, this acquisition reinforces the platform's position as a significant player in European residential investment markets.
People mentioned:
- Michael Keune, Managing Director, Catella Investment Management GmbH
- Benjamin Rüther, Head of Fund Management Residential, Catella Investment Management GmbH
Companies mentioned:
- Catella Investment Management GmbH (CIM) - Berlin-based investment management company
- Catella Real Estate AG (CREAG) - KVG platform managing Catella European Residential fund
- PHI Kronsrode Grundstücks GmbH - Seller of the properties
- Catella European Residential (CER) - Investment fund with €1.385bn in real estate assets
Image source: Catella Investment Management
