Catella Residential Investment Management has secured €280 million from seven German and Dutch institutional investors for the Catella European Residential III Fund (CER III) — 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 after the vehicle secured €750 million of equity by September 2021. 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 Catella 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 the ‘decarbonization transition’ in its residential investments, and we are also strong