The Catella European Residential Fund III has acquired The Arches, a 184-residential unit Build to Rent (BTR) development in Leicester, CER III’s first deal in the UK, for c.£32 million (c.€37 million) from developer Watkin Jones. The scheme was purchased for the Fund by UK-based partner Catella APAM and Berlin-headquartered Catella Residential Investment Management (CRIM).
Opening later this year, The Arches will offer 101 one-bed and 52 two-bed apartments as well as 31 studios. The apartments, specifically designed for the BTR market, will set a new standard for rental housing in Leicester, providing residents with access to a communal garden, co-working space, cinema room, gym, two lounges, cycle storage and car parking with electric charging points available.
The Arches, located on Bath Lane on the banks of Leicester’s River Soar, provides easy access to the leisure and amenities of Leicester city centre and is at the heart of the wider Leicester Waterside regeneration area.
Hugh McAleer, Catella APAM said: “This transaction is the first acquisition that Catella APAM has carried out acting as CER III’s investment and asset manager. The Covid-19 pandemic is driving a fundamental shift in traditional living and working patterns, as a result, the high quality and varied communal facilities and outside space incorporated into The Arches will establish a new benchmark for this type of rental accommodation in Leicester.”
Patrick Au Yeung, Fund Manager for the Catella European Residential Fund III, said: “With Catella APAM we have been able to secure our first UK acquisition for the CER III Fund as part of a longer-term strategy to invest in high-quality, well-located, residential assets across the UK. This acquisition in Leicester in the UK marks the seventh country for CER III in less than two years. The Fund has a strong pipeline with compelling investment opportunities to act upon in the forthcoming months in order to further grow and diversify the portfolio.”
As seen in:
CoStar – costar.com PDF
React News – https://reactnews.com/article/watkin-jones-agrees-32m-forward-sale-of-leicester-btr-scheme-to-catella-apam/
EGI – https://www.egi.co.uk/news/german-e1bn-fund-makes-debut-uk-btr-deal/