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Mark-Credit Suisse JV to build €1bn ‘granular’ resi portfolio

Private equity property firm Mark has formed a partnership with Credit Suisse Asset Management to acquire and manage small-scale city centre residential assets. The new platform, Doma, aims to build a portfolio across Europe worth €1billion.

Doma is to be led by Mark’s chief investment officer, Josip Kardun, who joined the company from Multi in March 2020.

Doma’s initial focus will be Germany and the Netherlands where it aims to build a €500 million portfolio. Both countries have large urban residential markets marked by under-supply, creating strong foundations for future rental growth.

Josip Kardun.

The company will target centrally located individual dwellings and small apartment buildings typically comprising up to 12 units in markets that are typically dominated by private individual buyers and sellers. By creating a granular portfolio of assets, Doma can provide investors with an institutional-grade portfolio of scale, it said in a statement.

Credit Suisse Asset Management’s multi-manager real estate team also invested in Mark’s last-mile logistics platform Crossbay.

Doma will form a key part of Mark’s multi-platform strategy, which has included specialised vehicles targeting opportunities in UK residential, urban logistics and luxury retail.

Mark, formerly Meyer Bergman, currently manages €4.4 billion in residential assets, and in 2015 launched Meyer Homes, a €600 million residential development platform focused on sites in the Greater London area.

Rented residential is attractive alternative to fixed income

“Residential for rent has demonstrated its resilience throughout the pandemic and in recent years emerged as an attractive alternative to fixed income for institutional investors such as pension funds and insurers thanks to its promise of long-term, liability-matching income streams with defensive, counter-cyclical qualities,” said Kardun.

“Doma aims to replicate the success we have had with our urban logistics platform Crossbay by aggregating granular assets that institutional investors would otherwise find hard to access and achieving a portfolio premium through scale, strong branding and proactive asset management.”

He said that although institutional ownership of traditional multifamily assets is well established in Germany and the Netherlands, “there is a major untapped opportunity in privately-owned smaller residential assets in prime urban locations that Doma will look to unlock using a mix of technological solutions and our network of on-the-ground teams with deep local market knowledge and contacts”