Catalyst acquires EUR194 million of assets for new EUR1 billion European core-plus real estate fund
Catalyst Capital, a European real estate investment and fund management firm, has completed the acquisition of EUR194 million of high-quality retail assets in Sweden, Germany and Poland and an office development in Paris for its new Catalyst Core Plus European Property Fund (CCPEPF), a EUR1 billion “evergreen” real estate fund.
Catalyst has acquired Galleria Center Syd in Malmo from Baring Real Estate, the Rathaus Center Dietzenbach near Frankfurt from Hahn Group, the Zielony Targówek retail park in Warsaw from Credit Suisse Asset Management and agreed to forward fund an office development by VINCI Immobilier in Saint-Denis, Paris.
Galleria Center Syd is situated next to the E6 highway, between the cities of Helsingborg and Malmo. It was refurbished and extended in 2015 to provide 434,800 sq ft (40,394 sq m) of space, anchored by hypermarket, ICA Maxi, and liquor store, Systembolaget. It features a strong range of household brands including H&M, Stadium, Lindex, KappAhl and Clas Ohlson.
Catalyst has appointed Nordic real estate investment and asset management company, NCAP, as strategic and operating advisor. They were advised by EY Law, PWC and WSP. The vendor was advised by Cushman & Wakefield and Mannheimer Swartling. Senior debt finance for the acquisition was provided by Helaba.
The Rathaus Center Dietzenbach is a modern, two-storey shopping centre in Dietzenbach, which is 12km south east of Frankfurt. It comprises 232,395 sq ft (21,590 sq m) of space, let to 32 tenants, including Rewe, Müller, Media Markt and C&A.
The Zielony Targówek retail park in Warsaw comprises 269,100 sq ft (25,000 sq m), of which 85 per cent is let to 12 international and national retailers, including KFC, Saturn and Dreams Design.
The @Work office development is a 6,700 sq m building in the Pleyel district of Saint-Denis, which is to become the main strategic transport hub of the Grand Paris project and the location of the Olympic village for the 2024 Olympic games.
Kean Hird, partner of Catalyst and the manager of the fund, says: “These three retail investments provide stable, long-term income, with the potential for value enhancement through asset management and development initiatives, which will generate attractive returns for our investors. Center Syd is the main destination shopping centre in one of the most densely-populated areas of Sweden. It has a strong mix of tenants and is performing well in terms of footfall and turnover."
The Rathaus Center has an attractive tenant mix of popular retail chains and is well located in the centre of Dietzenbach and with residential developments in the vicinity.
“Zielony Targówek is located in one of the most popular retail destinations in Warsaw, which has been subject to considerable residential investment recently, with further infrastructure investment expected in the next few years, including a new metro line. The @Work development is located in the largest regeneration area in Paris and will be the first new office building in the Olympic area with delivery expected in the second quarter of 2020”.
Catalyst announced the first close of CCPEPF in October 2017 with equity commitments of more than EUR455 million from international institutional investors. Using leverage, CCPEPF will have an initial EUR1 billion to invest in income-producing assets in every commercial real estate sector, including hotels and infrastructure. Geographically, CCPEPF will invest in the countries in northern Europe where Catalyst has an established presence, Germany, Poland, the UK and France.
Catalyst announced the first six investments for the fund for EUR200 million in March 2018. They are located in Frankfurt, Berlin, Leipzig, Paris, Wroclaw and three new autobahn service stations in Germany, with lease lengths ranging between five and 25 years.
As an “evergreen” fund, CCPEPF will have an indefinite life. Its final close is expected to be in the first quarter of 2018.
CCPEPF expands the value-add strategy Catalyst has successfully executed for more than 20 years. Catalyst is currently investing for its second European real estate fund, Catalyst European Property Fund II, which closed in August 2016 with EUR1 billion of spending power.