Munich-based investment manager Catella Real Estate has moved into a new asset class by launching a fund to acquire a pan-European portfolio of car parks.
Catella Parken Europa is an open-ended real estate special alternative investment fund (AIF) vehicle with an equity target of €200 mln. The fund will invest in parking garages in selected target markets across Europe.
At least least 70% of the assets will be sourced in core countries of Central Europe, with the rest located in other European countries, such as Portugal, the Czech Republic and Poland. The fund is designed exclusively for institutional and semi-professional investors, who will be able to participate from €5 mln and upward.
'Parking as an asset class is still often underestimated, although car parks have a higher average initial rate of return than office or retail properties. The targeted size of the individual properties we are aiming for in the fund is €5 mln or higher,' said Henrik Fillibeck, managing director of Catella Real Estate. 'The Catella Parken Europa fund will further contribute to significantly strengthening our market position as a niche provider of open-ended investment funds,' Fillibeck said.
The properties are being selected by Catella's Dutch partner Orange Investment Managers, which focuses on the acquisition and asset management of parking garages in Europe. The company is headed by two partners with a combined 25 years of experience in the parking investment business, and who have acquired parking garages across Europe worth more than €800 mln.
A maturing asset class
Parking has matured into an established investment alternative in recent years. Throughout Europe, there are around 48,000 parking garages in the 28 EU member states. The market is expected to grow further in years to come because car sharing, electric cars and highly automated driving will increase demand for paid-for parking space, according to Thomas Beyerle, head of group research at Catella.
'Parking space increasingly comes at a premium, especially in city centres, at airports and around hospitals, while parking charges are rising significantly faster than inflation. In addition, long leases mean that parking garages enjoy low levels of volatility and stable income,' Beyerle added.
The most prominent opportunity to hit the market this year, PropertyEU reported in October, is a €250 mln portfolio being sold by Dutch investment manager Bouwfonds. The portfolio comprises 17 car parks in Germany, the UK, France, the Netherlands and Spain. All of them are on the high street in key European cities, in locations such as the Champs Élysées in Paris and Mayfair in London. Cushman & Wakefield is marketing the portfolio for Bouwfonds. First bids were due in mid-October.
