Catella launches open-ended mutual real estate fund for small-scale, affordable living
Catella Real Estate AG has launched Catella Modernes Wohnen, an open-ended mutual real estate fund that invests in small-scale, affordable accommodation with a focus on one- and two-person households in German conurbations.
More than 75 percent of households in Germany are one- and two-person households, but one-room apartments account for only 3 percent of Germany’s housing stock; if 2- and 3-room apartments are included, the share is 30 percent. The average residential unit size of 95 square meters realized in new construction is not in line with demand. 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.
“We are talking about approximately 10 million to 12 million households looking for affordable housing in urban areas,” said Michael Keune, portfolio manager at Catella, in a statement. “That doesn’t work on 860 square feet to 1,080 square feet, but has to be realized on 215 square feet to 540 square feet to keep overall rents at reasonable levels. 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.”
The fund has made its first investment of €25 million ($30 million) in an apartment building 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 approximately €500 million ($585 million).
