The Catella European Residential Fund III has acquired Gramercy Tower, a 188-residential unit build-to-rent (BTR) development in Cardiff for c. £37.5M (c. €45M) from developer Urban Centric. The asset was purchased for the Fund by UK-based partner Catella APAM and Berlin-headquartered Catella Residential Investment Management (CRIM).
Gramercy Tower is due to be completed in Q2 2024 and will offer 120 one-bed, 66 two-bed, and 2 three-bed apartments. The apartments, specifically designed for the Build to Rent market, will provide much needed private residential accommodation within Cardiff’s city centre and also offer tenants a co-working space, residents lounge, fitness suite, two roof terraces, cycle storage, and car parking, with electric charging points available. Gramercy Tower is located at the heart of the Cardiff Central Enterprise Zone, adjacent to the Central Quay development and Cardiff Central Railway Station. It will provide tenants with convenient access to major employment, transport and amenity hubs in the city centre less than a 5-minute walk away.
Hugh McAleer, for Catella APAM, said: “We are pleased to be working with Urban Centric to bring forward Gramercy Tower on behalf of the CER III Fund to deliver 188 new, high quality, purpose built rental homes in Cardiff. Gramercy Tower is an excellent addition to the Fund’s growing UK residential portfolio and demonstrates the Fund’s continued ambition to invest in the UK residential market. The asset will be developed by placing ESG at the forefront of its design, delivering a sustainable development in line with the Fund’s environmental and social impact investment strategy.”
Xavier Jongen, Managing Director for Catella Residential IM, added: “In partnership with Catella APAM, the CER III Fund is pursuing a longer-term strategy of investing in high-quality, purpose built and well-located residential assets across the UK. The Fund strategy will be to continue to invest this capital in the UK Build to Rent market targeting purpose built, high-quality residential accommodation with strong ESG credentials in line with our impact investing objectives.”