Månad: februari 2023

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.

About COFACE

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.

About Amundi

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

Stine Zöchling

Head of Marketing and PR European Residential

Office: +49 (0)30 887 285 29 76

Mobile: +49 (0)151 544 51 005

stine.zoechling[ at ]catella-residential.com

The office building, known as “Elefanten 17”, is located in one of Stockholm’s prime office locations, Herkulesgatan 28 / Vattugatan 17-19, in the western part of Stockholm’s central business district. It is located above the Klaratunneln, with easy access to major transportation hubs including E4 motorway through Klarastrandsleden and Essingeleden, and only 5 minutes’ walk from Stockholm’s central Train Station, making it very attractive for tenants who need to be centrally located and have a quick connection to Stockholm’s Arlanda Airport.

The property was built in 2002, has a total rental area of approximately 4,650 sqm and is fully let to six tenants. The transaction was structured as a share deal, selling 100% of the shares of “Stockholm Elef. 17 AB”.

Catella Real Estate AG was advised by Catella Corporate Finance Stockholm acting as sell-side brokerage advisor for the transaction, while Landahl Advokatbyrå adviced the seller on legal and Ernst & Young AB on tax matters. Grandab Management AB was responsible for the local asset management during the 10-year holding period. DEAS Asset Management was adviced by Setterwalls on legal, KPMG on financial and tax and WSP on technical and environmental due diligence for this acquisition.

Jaime Sarrà, Senior Investment Manager of CREAG, says: “We are proud to announce the sale of Elefanten 17 in Stockholm. Catella was able to profit from a significant rental growth in the market and yield compression over the last 10 years. Sweden showed once more to be one of the most stable real estate markets in Europe, even in the current turbulent times. We will keep monitoring the Swedish market for new acquisitions, especially whitin the logistic sector”.

Axel Bertram, Portfolio Manager of CREAG, states: ”Having achieved exceptional returns for our investors over the years with this property, we have decided to shift our focus to new investment opportunities. This divestment provides us with an opportunity to realize a substantial profit for our investors.”

The purchase price has been agreed to be kept confidential by both parties.

About the ”Sarasin Sustainable Properties – European Cities” fund

The ”Sarasin Sustainable Properties – European Cities” is a fund managed by Catella Real Estate AG in cooperation with Bank J. Safra Sarasin AG. The cooperation with Bank J. Safra Sarasin Ltd. with common sustainability objectives, started already in 2011 and thus takes a pioneering role in the field of sustainable European real estate investments. The fund is specifically oriented towards the needs of institutional investors in Switzerland, Austria and Germany.

About Catella Real Estate AG

Catella Real Estate AG (CREAG), founded in January 2007 and headquartered in Munich, is engaged in the management of real estate investment funds as well as in providing advice on investing in real estate.

CREAG is a licensed capital management company (KVG) under German investment law (KAGB). The purpose of the company is the conception, development and management of open-ended real estate investment funds based on the expertise and outstanding market position of the Catella Group. CREAG currently manages assets under management of EUR 7.3 billion (as of December 31, 2022) in 20 real estate funds.

For more information please contact:

Catella Real Estate AG Julia Stübler, Marketing & PR Manager T: (0)89 189 16 65 275 F: (0)89 189 16 65 466 M: +49 (0)152 389 228 65 E: julia.stuebler@catella-investment.com   Further information can be found on the website: www.catella.com/immobilienfonds

It seems that the period of extremely low interest rates, which strongly supported the property market for almost a decade, is over, at least for now. As interest rates finally took an upturn last spring, the pace of transaction market also waned, and there was a clear upward adjustment in property yield requirements. Because of the uncertainty caused by market transformation, property transaction volumes were in a clear decline already in the autumn. After a very strong start to the year, the last quarter was the weakest since 2014 in terms of transaction volume. This year, too, is likely to start off slow, and the first half is likely to produce weaker transaction volume than usual.

Yield requirements decreased almost continuously since 2010 after the financial crisis when the prime yield requirement for offices in the Helsinki CBD was approximately 6%. Prime yield requirement was at its lowest in the winter of 2022, at the level of 3.2%. Last autumn, it quickly rose from rock bottom to the level of 4.0%. Although yield requirements have changed significantly, prime yield requirement is still nowhere near the average level over the last 20 years which is 4.9%, not to mention the levels seen after the financial crisis. Fortunately for investors, the rapid increase in yield requirements is somewhat compensated by large index increases in rents that can take place now for the longest time as a result of high inflation.

The Catella Market Indicator, Spring 2023 can be ordered by clients and co-operators for free from the following e-mail: info@catella.fi.

For more information, contact:

Antti Louko
Managing Director
tel. +358 50 5277 392
antti.louko@catella.fi