Berlin, 27 February 2019 – Capital Bay GmbH (CapitalBAY) is continuing on its path of robust growth. As of the end of last year, the Berlin-based alternative investment manager held real estate assets under management of some EUR 3.5 billion, an increase of EUR 1.25 billion (55 percent) compared to the prior year. Over the same period, CapitalBAY also doubled its staff to 170.
CapitalBAY completed transactions worth over EUR 765 million over the past year. The largest single transaction was the transfer of 756 residential units in the north German city of Hanover, which had already been secured previously, worth more than EUR 100 million into CB Wohnimmobilien Deutschland, an open-ended Special-AIF for institutional investors (Spezialfonds).
In its growing fund business, CapitalBAY received new capital commitments for the CB Wohnimmobilien Deutschland fund. For 2019, the firm plans to launch further open-ended AIFs for institutional investors in the micro-living, senior living, retail, office and project development segments. Other areas of particular focus in the current year will be the expansion of the existing third-party business across all of CapitalBAY’s operational management units as well as private placements. By way of example, CapitalBAY sees double-digit return potential in residential property privatisations in Germany’s major metropolitan regions. One of the unique strengths of CapitalBAY is its ability to deliver across the entire value chain, including property development and sales, with the support of its own in house resources and expertise.
The company’s driving objective for 2019 is to further round out its extensive range of services through both organic and inorganic growth. This specifically includes the expansion of the company’s temporary living segment, which includes not only student housing, co-living, boarding houses and hotels but also senior care and assisted living properties for CapitalBAY.
“Over the past year, we have significantly expanded our range of service offerings,” says George Salden, CEO of CapitalBAY. “With the launch of our new subsidiary CB Micro Living GmbH, we have stepped up our commitment to the temporary living asset class, which includes the senior living and care home properties which we operate with CURATA as our strategic partner.”
Looking at the overall market, Salden sees enduring strong demand for real estate, within Germany as well as internationally, driven by low interest rates and Germany’s status as a safe haven. “The pressure to generate investment returns remains great, especially for investments yielding stable cash flows,” says Salden. “Demand is enormous, from both the investor and the tenant side, and particularly in the senior care segment.”
At the same time, CapitalBAY is driving forward with its internationalisation and digitalisation plans. “With our new offices in Europe, Asia and the Middle East, we are in a strong position to gather international capital while also broadening our investor base,” adds Salden.