Catella Residential IM acquires EUR50m energy-efficient apartments project in Heidelberg
Berlin-based Catella Residential Investment Management (CRIM) has acquired a EUR50 million energy-efficient apartments complex project in Heidelberg, in one of the largest and most sustainable urban developments in Germany, on behalf of a separate mandate for a southern German pension fund.
The investment will lift total assets managed for the mandate, structured as a German institutional ‘spezial’ fund to invest in four countries across Europe, to more than EUR800 million. The vendor was Kreer Development.
The development is located in Bahnstadt to the west of Heidelberg’s city centre, an emerging district which aims to set a national standard for sustainable residential accommodation by mitigating carbon emissions with heating and electricity supplied from renewable energy sources for all the new housing in the area.
Michael Keune, Managing Director Catella Residential Investment Management, says: “This latest addition to the European portfolio of our institutional mandate is breaking new ground in terms of sustainability and social impact standards and is one of the last available properties in the new district. The development will comprise both rent-controlled and mid-range rental accommodation integrated within the buildings, creating a diverse social mix of residents.”
The residential complex will be completed in the first quarter of 2023 and will include 108 residential units with a total living area of approximately 7,750 sq m and 1,340 sq m of ground floor retail spread over two separate buildings. Future commercial tenants will include a local bakery, restaurants and retailers, such as discount supermarket chain Aldi and pharmacy DM. In addition, an underground car park will provide approximately 140 spaces and 283 bicycle stands.
The two buildings will be constructed to energy-efficient construction standards and furnished with high-quality fittings. All the apartments, including the 26 rent-controlled and 82 mid-range rental units, will be built to the same standards. The floor plans range from 60 to 100 sq m for two-, three- and four-room units. The surrounding area is a blend of new residential blocks and condominiums, student accommodation and office space.
Bahnstadt aims to become a car-free neighbourhood, and this is being facilitated by a new tram line and bicycle-friendly traffic planning. Car use and travel distances will be reduced due to the presence of shopping amenities, kindergartens and day-care centres as well as a primary school located in the district itself. At the end of 2019, Bahnstadt’s population was around 5,000 and is expected to grow to 6,500 once the development is completed. The district will also create new jobs for some 6,000 people.
With a population of over 160,000, Heidelberg is the fifth largest city of the state of Baden-Württemberg and, together with the cities of Mannheim and Ludwigshafen, forms the centre of the Rhine-Neckar metropolitan region. As a popular university city, Heidelberg is the academic and services hub for the region.