Bouwfonds European Residential, a German open-ended fund created by Bouwfonds Asset Management of the Netherlands and Catella Germany, has made its first acquisition in France.
Bouwfonds European Residential, a German open-ended fund created by Bouwfonds Asset Management of the Netherlands and Catella Germany, has made its first acquisition in France.
The residential property fund bought a development project for 45 apartments and 60 parking spaces located in Ville-la-Grand, 12 kilometres from Geneva.
Bouwfonds said that the opening of the Swiss employment market to European citizens had prompted thousands of French nationals to relocate close to the border to seek high-wage employment in Geneva. This relocation has had a significant impact on the nearby French real estate market. Bouwfonds European Residential wants to take advantage of the resulting supply shortages and rising prices in the region.
The transaction took place just days after the fund acquired a 245-unit residential property in the German port city of Hamburg for EUR 19.7 mln.
Primarily focused on German institutional investors and high net worth individuals, the fund targets a gross asset value (GAV) of EUR 1-1.5 bn in three to five years.
The fund had a positive net third party capital inflow in the last 15 days and did not face liquidity issues, Bouwfonds said. 'This underlines investors’ willingness to capitalise on the diversification benefits of residential when compared to commercial property.'
Several major German open-ended vehicles investing in commercial property have frozen redemptions recently after experiencing massive outflows of investor funds.
