Home / News / Industry News / Catella IM Benelux invests EUR65 million in affordable residential developments on Rotterdam for two German institutional funds

Catella IM Benelux invests EUR65 million in affordable residential developments on Rotterdam for two German institutional funds

Catella Investment Management Benelux (CIMB) has acquired two residential developments in the Rijnmond conurbation in the west of the Netherlands for EUR65 million on behalf of two Catella funds. 

The first asset is a EUR45 million affordable housing property in Rotterdam bought on behalf of the Catella Wohnen Europa Fund (CWE) from developer CreFu. The second is a recently converted studio apartment complex in Capelle aan den IJssel purchased for EUR19 million for the Catella Modernes Wohnen Fund (CMW) from Waterford Rive Republic BV. Both funds are managed by Catella Residential Investment Management GmbH (CRIM) and Catella Real Estate AG via their AIFM platform.

Ronnie Holtslag, Director Acquisitions at Catella IM Benelux, says: “The Netherlands is experiencing a severe housing shortage, especially in the affordable housing category. As long-term investors in residential real estate we can help alleviate the lack of supply by financing projects like these, which will offer modern, comfortable homes to a wide range of tenants. With monthly rents in the Rotterdam development expected to be between EUR850 and EUR1,100 depending on the size of the apartment, these new homes will be accessible and affordable to middle-income earners.”

The Rotterdam development is located on Palladiostraat 1-41 and Michelangelostraat 2-40 in the Prinsenland neighbourhood, part of Rotterdam’s Prins Alexander district. Developer CreFu consists of PR Development and has been appointed development and construction partners. Construction of the 161 apartments spread over two blocks will start shortly, with completion expected in Q2 2023. Upon completion, the development will deliver a total living area of approximately 10,600 sq m. The Palladio building will comprise 96 apartments with 61 ground-floor parking spaces while the Michelangelo complex will provide 65 apartments with 40 parking spaces at ground floor level. The apartments range in size between 45 and 105 sq m and will be finished to a high specification level, including gas-free, underfloor heating throughout and a private outdoor space. The units will have the highest possible energy label with solar panel installations on the rooftops of both buildings.

Rotterdam is Europe’s largest seaport and the Netherland’s second-largest city, with over 640,000 inhabitants representing 170 different nationalities as well as more than 30,000 expats. Of the more than 47,000 companies located in the city, 1,200 are international firms and its educational facilities include the renowned Erasmus University.

Prinsenland is one of the seven neighbourhoods that make up the popular residential district of Prins Alexander, which lies to the northeast of Rotterdam’s city centre, just 15 minutes away by metro. The apartments are located close to both retail and leisure facilities with a supermarket and other amenities nearby and the Alexandrium shopping centre 1.4 km away. Prinsenpark with its green spaces and pond is located next door while the larger 200-hectare Kralingsebos forest and lake, one of Rotterdam’s most popular recreational destinations, is just two kilometres away.

The second acquisition is the 113-studio apartment Rive Republic complex located on Rivium 1e Straat 121A–149M in Capelle aan den IJssel, a town to the east of Rotterdam. Formerly an office building, which was converted in 2019, the fully-let property comprises 4,339 sq m of 113 residential with 125 sq m of commercial space and 99 parking bays. The fully-furnished studios average 38.4 sq m in size and a local cafeteria, run by operator Daily, is on the ground floor. The building has the highest possible energy label thanks in part to its rooftop solar panels and alternative heating sources to gas.

Source: propertyfundsworld.com on the 30th September