French trade credit insurer COFACE has committed to the Catella European Residential III Fund, one of Europe’s largest cross-border residential investment vehicles with a strong focus on affordable housing and CO2 reduction.
This commitment brings the total capital raised by the Fund close to €1.25 billion since inception in 2019. CER III — a Luxembourg-domiciled SICAV fund — secured about €500 million in new equity commitments from COFACE and a range of European institutional investors, mainly pension funds in 2022.
COFACE was advised by Amundi Real Estate’s fund selection and multi-management business line. CER III is managed by Berlin-based Catella Residential Investment Management (CRIM).
Michael Fink, Managing Director, CRIM, said: “CER III has achieved remarkably strong and rapid growth since its launch in 2019. Catella focuses relentlessly on the highest possible sustainability targets for the decarbonisation transition and which encompass societal fairness through affordable rents.”
Sabrina Communie, Group Investment, ALM & Cash Director, COFACE, added: “This investment fully supports COFACE’s commitment to reduce its CO2 footprint.”
CER III integrates a significant reduction of greenhouse gas emissions from its properties and sustainable societal objectives in its investment mandate. The Fund has a geographically diversified portfolio of around 30 residential properties in seven countries across Europe. Alignment of interests between Catella and institutional investors in CER III is achieved through incorporating a penalty clause into the management agreement whereby CRIM will donate part of its recurring management fee to a relevant ‘impact-related’ United Nations Fund should the manager fail to meet the financial or societal targets set for the fund.
Abdallah Ould Brahim, CBRE France, Head of Capital Advisors, concluded: “The CER III Fund is targeting modern, affordable residential properties, including new developments, which provide stable cash flow and offer long-term value growth. CBRE Capital Advisors are mandated to advise on fundraising from international investors, and we’re happy to welcome COFACE as the third reputable French investor in the Fund in addition to the two other existing French institutional investors. I see this Catella vehicle as one of the most compelling offerings in the pan-European residential investment market, not least because of its pioneering ESG profile.”
CER III’s mandate also allows the Fund to allocate up to 10% of its total assets under management to the ‘Elithis Impact Fund’, the world’s first ‘energy-positive’ residential impact vehicle, which invests in joint venture developments, currently in France, between Catella and French sustainable engineering group Elithis. The Elithis residential towers produce more renewable energy from solar power than the buildings and the tenants consume, reducing household energy bills and boosting disposable income.
About Catella Residential Investment Management GmbH (CRIM)
Catella launched its first European residential fund in 2007.The team also launched the first dedicated European Student Housing Fund in 2013. CRIM is a subsidiary of the Stockholm-based Catella AB Group and its residential real estate business comprises portfolio management, acquisitions, sales and asset management. CRIM manages and advises several funds and mandates and has assets under management of more than €7.5 billion across 10 European countries.
About CBRE Capital Advisors
CBRE Capital Advisors works closely with real estate managers and investors as corporate finance advisor with a background in the commercial real estate market. The team, consisting of international experts, are skilled to support and assist in preparing and completing transactions and to provide real estate professionals with strategic and tactical advice for all indirect property investment queries, including topics as property funds, joint ventures or club deals, or related strategic organizational questions.
CBRE Capital Advisors B.V. is licensed by the Authority for Financial Markets (AFM) and acts as placement agent to raise international capital for CERIII outside of Germany.
With 75 years of experience and an extensive international network, COFACE is a leader in trade credit insurance and adjacent specialty services, including Factoring, Debt Collection, Single Risk insurance, Bonding and Information services. COFACE’s experts work to the beat of the global economy, helping ~50,000 clients in 100 countries build successful, growing, and dynamic businesses across the world.
Amundi, the leading European asset manager, ranking among the top 10 global players[i], offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €1.9 trillion of assets.[ii]
With its six international investment hubs[iii], financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 5,400 employees in 35 countries.
Amundi Real Assets brings together a complete range of capabilities in real estate, private debt, private equity and infrastructure. Drawing on decades of experience in private markets, Amundi facilitates access to real assets for institutional and retail investors. With nearly €66.3 billion in assets under management[iv] invested in nearly 1,800 assets in 16 European countries, the business line is supported by 250 professionals in seven main investment hubs in Paris, London, Milan, Luxembourg, Barcelona, Madrid and Dublin. Find out more on real-assets.amundi.com.
Amundi Real Estate has developed a business line specialized in real estate multi-management. Amundi Real Estate is active in real estate fund selection since 2014, with more than €1.5 bn of (external) funds under management. With a rigorous selection and management process, and a strong focus on ESG criteria, Amundi Real Estate develops tailor-made solutions for institutional clients to build and manage portfolios of unlisted real estate funds.
For more information, please contact:
Catella Residential Investment Management GmbH
Head of Marketing and PR European Residential
Office: +49 (0)30 887 285 29 76
Mobile: +49 (0)151 544 51 005