Catella was founded in 1987 in Sweden and is listed on Nasdaq Stockholm in the Mid Cap segment. The business is run through three business areas: Corporate Finance, Investment Management and Principal Investments. 

Catella Investment Management offers institutional investors innovative property funds and other custom-made indirect structures, asset management, project management including development, and advisory services. Catella is a leader in sustainable real estate investing, including offering two true SFDR Article 9 funds. 

In addition, Catella co-invests opportunistically with its clients through the business area Principal Investments. 

Within the investment management business, Catella Asset Management offers a diverse range of services that create value in all phases of a property lifecycle in all sectors. This includes identification and acquisition of projects, financing, strategic management such as executing decarbonisation plans, and ultimately sale – all with a focus on sustainability. 

Catella’s philosophy is to leverage local knowledge for sustainable investment. The operations are run by majority-owned local teams across Europe that offer comprehensive knowledge of property markets. Catella Investment Management covers investment activities on behalf of national and international institutional investors, such as insurance companies, pension funds, property funds, investment funds, sovereign wealth funds, family offices and high-net-worth individuals. 

The main centres for Catella Investment Management are: 

  • Benelux – Maastricht 
  • Denmark – Copenhagen 
  • Finland – Helsinki 
  • France – Paris (as of Q4 2023) 
  • Germany – Munich (commercial and KVG); Berlin (residential); Düsseldorf (development) 
  • Spain – Madrid 
  • Ireland – Dublin 
  • Sweden – Stockholm 
  • UK – London and Manchester

Sector forecasts

INDUSTRIAL: Logistics and industrial properties continue to be the profiteers of new, pandemic purchasing behaviour. ESG-compliant new construction space in particular is in demand – the signs here continue to point to growth with a simultaneously limiting supply. The geographic focus will be strongly on the CEE region in the coming years. 

OFFICE: The office investment market continues to wrestle with the question of future occupancy rates. Catella observes a questioning of the space dimensions – real reductions can be observed most clearly in London. Currently, a very wait-and-see attitude can be observed, which is supplemented by tightening ESG requirements. 

RESIDENTIAL: European residential markets have come under pressure with the ramping up of interest rates by central banks driving up financing costs, alongside higher material prices and labour costs, as well as tighter environmental and potential rent price regulations adding to the headwinds facing the sector. Investors and managers have responded by moving to the sidelines, if they can afford to wait it out. Interestingly, these dynamics have also redirected demand from homeownership to rental markets. Therefore, Catella anticipates renewed investor appetite as near the apex in interest rates and the visibility on valuation levels and the position of European residential markets in the cycle becomes clearer. 

Simultaneously, the markets are undergoing a transformation, with a widening valuation disparity between sustainable ‘green’ assets and conventional ‘brown’ assets. Catella therefore foresee a split in the market developments of brown assets, brown-to-green conversions and green assets that will drastically change business models and future housing markets. 

RETAIL: Properties with a high proportion of food retail currently dominate the market. Classic shopping centres struggle with changing shopping behaviour. Investors therefore remain cautious. 

OTHER: Parking offers very good investment opportunities due to the limitation of car traffic in European cities. Hotel investment markets returned to pre-COVID levels this summer. Opportunistic investors currently dominate the market. 

This means focusing on either investments that already have ESG credentials, clear decarbonisation pathways to go from brown to green that make economic sense, or the possibility to develop to the high sustainable standards. With in-house local asset management Catella is much better positioned to execute zero-carbon plans than centrally managed allocator-investors. 

Within residential investments, Catella invests in core, and manage-to-core, diversified modern and affordable residential assets, providing stable cash flow and long-term value growth with built-in resiliency and robustness because of the focus on sustainability. These investments also include forward funded new developments as well as undersupplied sub-segments such as senior living, student housing and serviced apartments. Catella also sees an opportunity to take opportunistic risk in the face of high demand and low supply to develop sustainable and affordable housing. 

Within commercial property, Catella invests and manages a wide range of investment strategies depending on client requirements, but always with a focus on sustainability. 

Strategic corporate development

During the past years, Catella has undergone a major transformation and refined its business to fully focus on property in three distinct business areas with significant synergies. 

Together these three business areas provide investment and asset management combined with the capability to co-invest along with clients and cutting-edge market intelligence and advisory services. 

Based on a stable financial position, Catella will continue its growth journey and offer capital solutions designed to meet clients’ needs and demands throughout the various stages of an economic cycle, in a spread of geography, assets and opportunities. One recent example is the acquisition of Aquila Asset Management, which will strengthen capabilities in France as well as offering pan-European investment synergies. 

The broad offering is well-adapted to be developed to the market situation. This includes a clear focus on increasing products with a clear link to sustainability.

Investment principles & strategy 

Catella is your sustainable investment partner – the link between property and capital. 

In addition to being the right thing to do, Catella philosophically believes in the ‘dual materiality’ of sustainable investing – pursue sustainability objectives not only for the benefit of society, but to achieve financial returns and to create real estate that is resilient and robust to adverse shocks. At Catella, sustainability is an opportunity, not a compliance process. 

Performance verification

Catella performance data is regularly reported to our clients in accordance with their requirements. Catella is licensed under Finansinspektionen in Sweden, BaFin in Germany and the FCA in the UK. Catella follows reporting standards and procedures of, among others, INREV, BVI, GRESB and CRREM. Catella funds are consistently leading in German Handelsblatt’s fund performance ranking. 

COMPLIANCE STATEMENT

The board of directors’ responsibility for internal control is governed primarily by the Swedish Companies Act, Nasdaq Stockholm’s regulatory framework for issuers and the Swedish Corporate Governance Code. Information about Catella’s internal control and risk management system and measures taken by the board of directors to ensure effective internal control is disclosed each year in Catella’s corporate governance statement.