Catella European Residential III Fund adds €280m

The Catella European Residential III Fund (CER III), managed by Berlin-based Catella Residential Investment Management (CRIM), has secured €280 million ($305 million) from seven German and Dutch institutional investors.

CER III is the first pan-European “dark-green” ESG impact fund for residential real estate. The capital raise brings the fund’s total assets under management to more than €1 billion ($1.1 billion). In September 2021, the vehicle had secured €750 million ($876 million) of total equity.

The fund targets the reduction of greenhouse-gas emissions and has sustainable societal objectives in its investments. CER III also has integrated a penalty clause into its management agreement whereby CRIM will donate part of its recurring management fee to a relevant impact-related United Nations charity, should the manager fail to meet the financial, environmental or societal objectives set for the fund.

“The CER III impact fund has a laser focus on