The foundation's official purpose was to obtain real estate to be used as rest and recreation centers for members of the SS, Reich Security Police, and their families.
Heydrich named five directors: Karl Wilhelm Albert, Herbert Mehlhorn, Werner Best, Kurt Pomme, and Walter Schellenberg.
The 11-hectare Katharinenhof had its own beachfront, archaeologically significant Stone Age graves, a beach house with a thatched roof, and stables.
The outbreak of World War II in Europe on 1 September 1939 caused the foundation to become inactive for the next six months.
The industrialist Friedrich Minoux, owner of the villa, had been jailed for defrauding the Berlin Gasworks, the largest financial crime of the Nazi era.