Berlin-based Capital Bay GmbH is continuing its strong growth trajectory: at the end of last year, the alternative investment manager managed property assets totalling around 3.5 billion euros, an increase of 1.25 billion euros (55 percent) compared to the previous year. At the same time, Capital BAY doubled the number of its employees to 170.
In total, Capital BAY completed transactions worth over 765 million euros last year. The largest transaction was the contribution of an already secured portfolio of 756 flats in Hanover worth over 100 million euros to the open-ended special AIF CB Wohnimmobilien Deutschland.
In the fund business, Capital BAY received new capital commitments for the CB Wohnimmobilien Deutschland fund and plans to launch further new open-ended special AIFs for institutional investors in 2019 - in the micro-living, senior living, retail, office and project development segments. Other focal points will be the expansion of the existing mandate business for all operational management units and private placements. Capital BAY sees double-digit return opportunities in the privatisation of residential portfolios in German metropolitan regions, for example. One of Capital BAY's strengths is that it creates the entire value chain in-house - including construction and sales.
Further organic and inorganic growth to round off the range of services is the goal for 2019, including the expansion of the "Temporary Housing" segment, which includes student accommodation, co-living, boarding houses and hotels as well as care homes and assisted living. George Salden, CEO of Capital BAY: "We have significantly expanded our range of services over the past year. By founding CB Micro Living GmbH, we have strengthened our involvement in the temporary living asset class - senior living and our care properties, which we operate with CURATA as a strategic partner, are part of this."
Overall, Salden sees continued strong demand for property from Germany and abroad, driven by low interest rates and Germany's 'safe haven' status: "Investment pressure remains high and the focus is on stable cash flows. Demand for care homes in particular is immense - from investors and tenants alike."
At the same time, Capital BAY is driving forward the internationalisation and digitalisation of the company. "With new offices in Europe, Asia and the Middle East, we are currently attracting international capital and strengthening our investor base," says Salden.