Catella Real Estate AG has launched “Catella Modernes Wohnen” – an open-ended mutual real estate fund. The fund invests in small-scale, and thus affordable, accommodation with a focus on one and two person households in German conurbations.
The new fund will invest in small-scale and therefore affordable housing development that meets demand. In addition to students, the target group also includes the huge group of commuters, young professionals and above all senior citizens.
“Catella Modernes Wohnen aims to provide affordable living space to the largest group of users of residential accommodation – Germany’s rising number of one- and two-person households”, says Michael Keune, portfolio manager at Catella.
The fund has made its first investment of €25m in an apartment building in Mainz, situated within walking of the city’s main railway station. Scheduled for completion in September, the property has 77 single and 65 double apartments. The building is part of a micro-living complex with additional services and student apartments also acquired by Catella managed funds. In total, Catella has thus invested in around 900 apartments for students, young professionals and commuters at the Mombacher Strasse location in Mainz.
Further projects for micro living, student accommodation, housing for senior citizens and temporary accommodation (boarding houses) are already in the due diligence phase. The fund’s target volume is around €500m, with an overall target return based on the BVI method of 3.5-4.5% p.a.