Catella Real Estate, the investment adviser based in Munich that is part of the Nasdaq Stockholm listed Catella group, has exceeded its target fundraising on a fund focused on Dutch residential property – underlining the trend seen recently for investors interested in this asset class.
The open ended AIF Panta Rhei Dutch Residential launched in 2015, and has exceeded its equity placing target of €155m, with six institutional and professional investors putting up the money, which has taken the investment potential to some €260m, Catella reported.
It said that prices for Dutch residential propety gained 2.7% in the second quarter of 2016, meaning prices recovered to within 7% of their record highs in 2008, and were up 14% from levels in 2013.
There is a dearth of housing in Dutch metropolitan areas, while the number of new residential units is “stagnating and the volume of planning permissions is on the decline”.
“This makes the market very attractive for institutional investors,” said Thomas Beyerle, head of Group Research at Catella.
The trend for investing in Dutch residential property was highlighted earlier in 2016 by InvestmentEurope (http://www.investmenteurope.net/regions/benelux/banking-on-property/) with investors such as Aberdeen and Venn Partners seeing opportunity.
Catella said that its Panta Rhei fund had invested €79.3m to date, in properties located in Eindhoven, Nijmegen, Rijswijk, Utrecht-Nieuwegein, Rotterdam and Leidschendam. A further €20m of property investment is being targeted before the end of this year. The fund, which was formed between Catella Real Estate and Panta Rhei Advisory, is looking to target an investment “window” of the next 2-3 years.
Overall, Catella Real Estate is managing some €1.5b in European residential property mandates, according to Henrik Fillibeck, managing director at Catella Real Estate.