Nordic financial group Catella’s property business has joined with Kriton Immobilien GmbH to launch Catella Asset Management for the property market in Germany.
Catella’s property business constitutes some €5.6m of assets under management, with activities in 14 countries. Kriton has been an independent property investment manager in German for the past decade, with assets under management of about €430m, run out of its Munich base. Together through the new Catella AM business they aim to leverage returns from high growth regions of Germany.
Henrik Fillibeck, member of the Managing Board of Catella Real Estate AG, said: “Kriton has specialised experience in identifying and leveraging the value-add potential of real estate.”
“During the current market phase, high national and international demand for properties in the core segment with fixed long-term rentals has led to a price situation where the risk-return profile of properties with asset management potential is becoming increasingly more attractive. Not only does a regional presence with local expertise offer the opportunity to generate higher returns, it also increases investment security, because the value-add potential is leveraged at the outset for a foreseeable period. In this context, manage-to-core prospects unlock the potential to realise increases in value quickly. A service for third parties is that management fees generate regular income while profit sharing provides performance-related incentives.”
Andreas Hauff, one of the managing directors at Kriton, added: “In Catella, Kriton has joined forces with an experienced partner with international activities with whom major single investments as well as large portfolio deals can be realized.”
“Catella supports our approach of applying proactive management, especially for investors without operational activities, by re-modelling distressed properties, enhancing their rental potential and reselling them at a profit within a short to medium-term horizon.”