Catalyst Capital in innovative approach to German, French bank REO assets

European private equity real estate asset manager and developer Catalyst Capital is using its new opportunity fund to provide mid-level equity to German, French and UK banks that have taken ownership of foreclosed or distressed property from owners. Drawing on committed equity of e228m in its new Catalyst European Property Fund, partner Anthony Yiannakis, head of acquisitions Maureen Mahr von Staszewski and asset management head Hans Stuckart are looking to exploit situations in Germany where banks need extra capital to refurbish or improve collateral real estate taken in REO from owners. Yiannakis told PIE: "A typical example would be an office building, 70%-let with a variety of lease terms, some leases coming to an end, some longer-term core income and some vacancy where these spaces needs some renovation... What banks don't want to do at the moment is to put more capital into the deal." The fund, closed last month, is the first fully discretionary capital pool that Catalyst has managed. It was launched from an awareness that the financial crisis is providing significant opportunities, many of which require innovative and creative approaches. (Full interview to be published in Property Investor Europe 119 on Monday 4 May)