Swedish asset manager Catella has partnered with German counterpart Kriton Immobilien to launch a new asset management firm following rising demand for advisory services in real estate management.
The new firm, dubbed Catella Asset Management, will leverage earnings potential of properties in Germany’s high growth regions.
The firm will be led by Andreas Hauff and Nicolas Hartel. Specialists from Catella as well as Kriton will manage investor interests.
Catella Real Estate member of the managing board Henrik Fillibeck said: “During the current market phase, high national and international demand for properties in the core segment with fixed long-term rentals has led to a price situation where the risk-return profile of properties with asset management potential is becoming increasingly more attractive.
“Not only does a regional presence with local expertise offer the opportunity to generate higher returns, it also increases investment security, because the value-add potential is leveraged at the outset for a foreseeable period.”
Kriton managing director Andreas Hauff added: “Catella supports our approach of applying proactive management, especially for investors without operational activities, by re-modelling distressed properties, enhancing their rental potential and reselling them at a profit within a short to medium-term horizon.”
Catella’s manages around €5.6m in real estate assets, and has operations in 14 countries. Meanwhile, Kriton has been operating as an independent property investment manager in Germany for the past decade, overseeing nearly €430m in assets.