Catella launches new European student-housing fund, makes first investment

Catella Residential Investment Management (CRIM) has launched its Catella European Student Housing Fund II (CESHF II) with €100 million ($110 million) in capital commitments from institutional investors at first close.

The fund has already made its first acquisition: an apartment in Mannheim, Germany, for €38 million ($42 million). The recently completed property consists of 208 apartments for up to 313 students and is located in the city’s new development area of Franklin Areal, a former U.S. army base. The seller was German developer P+B Planen + Bauen GmbH & Co. KG, which has been developing student accommodations in the German market for years.

CRIM said the fund is targeting growing university cities in Germany, Austria, France, the Benelux and Spain, but will also consider assets and locations that meet its investment criteria in the United Kingdom, Denmark, Portugal and Poland.

“Education is a global growth market and the market for student ho