The Catella European Residential III Fund (CER III) has entered the Spanish market with its acquisition of a recently developed residential property in Madrid for approximately €60 million. This milestone raises the fund’s total assets under management to over €900 million. Managed by Berlin-based Catella Investment Management (CIM), the CER III Fund collaborated with Catella Asset Management Iberia (Catella AM Iberia) to close the deal. Catella AM Iberia will oversee asset management for the property. The newly acquired building is situated in the Villa de Vallecas district, southeast of central Madrid. Completed in the first quarter of 2024, it comprises 235 rental apartments spanning 19,198 sqm, alongside two commercial units. The district is known for its robust population growth and strong demand for affordable housing. “Villa de Vallecas is a popular neighborhood close to Madrid’s city center, offering excellent social infrastructure and public transport within a ten-minute walk,” said Eduardo Guardiola, Managing Director of Catella AM Iberia. “The property is nearly fully let, reflecting the area’s appeal.” The residential building features a mix of 50 three-room, 115 two-room, and 70 one-room apartments, all equipped with high-quality fittings, electric external blinds, and air conditioning. It also offers 264 car parking spaces, 34 motorcycle spaces, and 235 storage rooms. Communal facilities include co-working spaces, a gym, green recreational areas, a swimming pool, a children’s playground, and a picnic area. Aligned with CER III’s ESG-focused investment strategy, the property is certified as ‘Very Good’ under the BREEAM sustainability rating and has achieved an A/A EPC rating for energy efficiency and low CO2 emissions. It operates entirely on electricity, with a portion supplied by rooftop photovoltaic panels. Michael Keune, Managing Director at CIM, emphasized the significance of the acquisition for the fund’s diversification strategy. “The Catella European Residential III Fund targets modern residential properties in high-growth European regions, with a focus on Germany, the Netherlands, France, and Scandinavia. This acquisition marks our first property in Spain, expanding our portfolio to nine European countries.” CER III is regulated under Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR), requiring all properties to meet rigorous ESG standards. The Madrid acquisition underscores the fund’s dedication to sustainability and its strategy of integrating environmental, social, and governance principles into real estate investment. The acquisition positions CER III to capitalize on Madrid’s growing rental market while further enhancing its portfolio’s geographical and ESG credentials.