The Catella European Residential Fund III has completed on its acquisition of The Arches, a 184-residential unit Build to Rent (BTR) development in Leicester for c. £32M (c. €37M 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).
The development reached practical completion at the end of September with the first tenants move in mid-October. The Arches offers 101 one-bed, 52 two-bed apartments and 31 studios alongside extensive internal and external amenity spaces for residents including a communal garden, co-working space, cinema room and two residents’ lounges. Located within the heart of the Leicester Waterside Regeneration area on the banks of the River Soar, the development offers tenants easy access to the leisure and amenities of Leicester city centre located close by.
Hugh McAleer, Catella APAM said: “We are delighted to have completed this first transaction into the UK market acting as CER III’s investment and asset manager. The development is an exceptional example of a high-quality, well-located residential asset with ample amenity space both internally and externally for residents to benefit from. This first acquisition form’s part CER III’s wider strategy to add to its growing European portfolio with the UK being a key focus in the coming years.”
Patrick Au Yeung, Fund Manager for the Catella European Residential Fund III, said: “We are delighted to complete this acquisition as part of our wider residential investment strategy in the UK and expect to close a number of further investments in the coming six months. We are also proud of CER III’s latest equity commitments as well as its transition from a light green real estate fund to the certified status of the first dark green residential property impact fund.”