Catella launches €150m Southern Germany special fund

Catella Real Estate, the Munich-based investment manager of the Swedish financial group, has launched a new Special Fund focused on commercial real estate in southern Germany, targeting equity of €150m and a yield of 4%-5%.

The IWS II–Wirtschaftsregionen Süddeutschland will focus on A and B cities in Bavaria and Baden-Württemberg, with 40%-60% destined for office, 20%-40% for retail and 20%-40% for logistics assets, Catella said.. It sees good prospects for the region as the population continues to grow, economic forecasts are positive, and unemployment as well as public and private debt remain low.

The new fund follows IWS I, which has built a net volume of €155m since inception in December 2011. It holds 13 assets in cities such as Nuremberg, Stuttgart, Regensburg, Augsburg and Munich, which have an average 98% occupancy. The initially planned equity has been raised twice as investors raised commitments. “Thanks to the positive development of IWS I, we are confident of meeting our forecasts for the successor fund IWS II,” said Catella board member Henrik Fillibeck. “The high demand from investors shows how popular property as an investment product currently is.”

Catella Real Estate, founded in 2007, manages property worth over €2bn. Stockholm-based listed Catella Group specialises in real estate investment banking, financial services and asset management across 12 European countries.