Catella is the link between property and finance. We provide strong local expertise on a Pan-European platform with global reach. Catella offers customised services in property and alternative investments for professional investors.
Investment principles & strategy
We continue to invest cautiously with special focus on ESG. With our local presence throughout Western Europe we are well placed to do the proactive asset management needed.
The vast majority of our capital is risk-averse core money and we still see opportunities where risk-adjusted returns fit to our targets. Our funds have typically low leverage and thus we are not much exposed to higher interest rates.
Our local AM works for a number of external clients, many of which are opportunistic investors. We are starting to see opportunities arising.
Sector forecasts
INDUSTRIAL: Logistics and industrial properties have been the winners of the change accelerated by COVID. Investor interest has still remained strong but there are signs of the hype slowing down. Raising interest rates and market uncertainty are likely to lead to yield increases.
OFFICE: Market uncertainty is taking its toll in the office investment market and investors are still adopting a wait-and-see attitude, especially with properties that do not have stable income. High ESG credentials have become a norm for both investors and tenants and this continues to put upward pressure on green assets and downward pressure on brown assets.
RESIDENTIAL: Residential investments have experienced a long ride but now rising interest rates and pressure to ESG-driven investments are leading to somewhat lower valuations. User demand for good quality residential property remains high, especially as increased interest rates and weakened financing availability have made buying less tempting.
RETAIL: Demand for grocery retail continues to be strong. With other retail, investor interest is partly returning but at lower levels than before COVID and very cautiously.
OTHER: Hotel investment markets are slowly returning closer to pre-COVID levels. A lot of opportunistic money continues to seek opportunities that are rare.
Strategic corporate development
Catella has recently disposed of all non-property business and is now fully focused on property. Our investment management business continues to grow fast, with the support of Principal Investments using our own balance sheet. We continue to invest alongside our clients and thus create alignment. Catella Corporate Finance continues to act as one of the major advisers in selected markets. This strengthens our market access.
Performance verification
We follow the relevant regulations and instructions of relevant parties like Inrev, Bafin and GRESB.
COMPLIANCE STATEMENT
The board of directors’ responsibility for internal control is governed by the Swedish Companies Act and the Swedish Annual Accounts Act (1995:1554). 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.
