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Catella buys €30m German affordable housing for bank

CRIM’s Leipzig acquisition [Image: Unterplan]

Berlin-based Catella Residential Investment Management (CRIM) has paid €30 million for two residential properties in Leipzig and Münster.

CRIM said these are the first transactions under a new €300 million mandate which will focus on investments in affordable housing. The properties have been acquired on behalf of one of Germany’s largest cooperative banks.

The 4,810 sq m Sonnenpark development is located in the Probstheida district of Leizig, to the southeast of the city centre, and comprises 62 residential units and 66 underground parking spaces.

The vendor in the Leipzig transaction was Unterplan Baubetreuung, an Austrian developer. BNP Paribas Real Estate acted as advisor.

Leipzig population spurt expected by 2030

Leipzig is one of the fastest growing cities in Germany and its population is forecast to rise from 600,000 to 640,000 inhabitants by 2030. There is a structural shortage of mid-range rental accommodation.

The city is home to several major companies including BMW, Porsche, Bayer and DHL, as well as US concerns DOW and Amazon.

The second acquisition is in the Gievenbeck district, west of Münster’s city centre. The 3,873 sq m subsidised housing estate was built in 2002 and comprises six apartment blocks with a total of 54 residential units. The vendor was Bielefeld-based family-owned developer Bautra Group.

“The new mandate from one of our longstanding clients represents an extension of our existing successful relationship,” said CRIM managing director Michael Keune.

He said that the investment framework of the mandate matches CRIM’s core ESG philosophy, “as the huge need for much greater supply of affordable housing to ensure the prosperity and societal fairness of our cities will remain for many years to come.”