Friday, 22 August 2025
Property investment and advisory group Catella delivered a strong second quarter, supported by higher transaction volumes in Europe and key divestments, including the sale of Kaktus Towers in Copenhagen. Operating profit rose to SEK 303 million, up from SEK 35 million in the same period last year.
The European transaction market showed cautious recovery during the quarter, with volumes increasing by 11% year-on-year. Improved credit conditions narrowed the gap between buyers and sellers, facilitating deal closures. This trend, combined with stable inflation and lower interest rates, created more favorable conditions for investors.
Catella’s Principal Investments division was the main driver of results, contributing SEK 252 million through the Kaktus Towers divestment. The business area also entered into a joint venture with Barings on the Vega residential project in Copenhagen, which will deliver 269 affordable apartments. In Berlin, Catella advanced its Silbersteinstrasse development of 92 rental units by filing for a building permit. Management said future efforts in the division will focus on diversification through early-stage investments, co-investments, and partnerships.
Corporate Finance activity also picked up, with Catella advising on several large-scale deals. Highlights included advising NIAM on the sale of the 75,500-square-metre Copenhagen Business Park and acting on 18 Swedish transactions worth SEK 3.7 billion. To support its pan-European strategy, Catella created a new role of Head of Corporate Finance Europe, underscoring the growth potential of this business area.
Investment Management recorded stronger performance, with assets under management rising by nearly SEK 8 billion in the quarter, largely due to new mandates in Denmark, the UK, and Finland. Operating profit for the division improved to SEK 41 million, supported by increased variable income from transactions.
While management acknowledged persistent geopolitical risks and weaker-than-expected growth in some European economies, Catella said its strong capital position following the Kaktus Towers sale leaves it well positioned for new investments. The company also plans to repurchase interest-bearing debt to improve efficiency and reduce financing costs.
The quarter marked the final report by the interim CEO, who transitions to the new role of Head of Corporate Finance Europe. Rikke Lykke has been appointed as Catella’s new CEO and President. The company said it remains optimistic about market conditions and expects to capitalize on opportunities across Europe through its diversified business model.
