Catella Invests €200M in Housing in Spain & Enters the Nursing Home Segment

4 February 2019 – Eje Prime

Catella is growing its portfolio in the Spanish market. The Iberian subsidiary of the company’s fund manager, Catella Asset Management Iberia, is starting the year with plans to strengthen its position in all areas of the residential segment: from the traditional market, where it now has a portfolio comprising 1,000 homes, to alternative assets such as student halls and nursing homes for the elderly, a segment that it is planning to enter in Spain.

In Spain, the German manager owns a portfolio worth €250 million in assets under management distributed across Madrid, Barcelona and Pamplona. Most of its portfolio comprises residential rental assets, according to explanations provided by Eduardo Guardiola, Director and Partner of Catella Asset Management Iberia, speaking to Eje Prime.

The company currently has 1,000 homes under management in the Spanish market and its objective for this year is to add another 1,000 units, with an investment of around €200 million.

Catella also wants to strengthen its position in one of the fashionable residential segments: that of student halls. The manager has a fund that specialises in that market, through which it first entered Spain in 2017 with the purchase of an asset in Pamplona (…).

The company is planning to invest between €30 million and €60 million in such assets this year, with the aim of adding three or four new residences in the Spanish market.

The latest asset that Catella is backing are nursing homes for the elderly. The manager has just entered that segment in France, where it purchased six homes for €130 million two weeks ago.

“It is a very fragmented sector that is tending towards consolidation”, said Guardiola. “There are many owners who are also operators, who are now planning to sell their properties to focus on operations, and that opens up an opportunity for those of us who are searching for property”, said the executive (…).

They are non-medicalised assets, for non-dependent people, which include some services within the rental price as well as other ad hoc provisions (…).

Catella Asset Management also operates in the retail segment with retail parks and shopping centres, “provided they have a management component” (…).

Catella Asset Management specialises in the investment and management of real estate assets throughout the whole cycle, until exit. The company purchases existing assets as well as turnkey projects from property developers. In Spain, the group also operates its other line of business, that of real estate consultancy.

Original story: Eje Prime (by Iria P. Gestal)

Translation: Carmel Drake