INTERVIEW: Georg von Hammerstein on Patron's German strategy

Georg von Hammerstein, former chief investment officer at Pramerica, talks to PropertyEU about his new position at Patron Capital.

Appointed senior adviser, Von Hammerstein will work with Patron’s existing investment teams and focus on new investments in Germany and the German-speaking countries to invest €1 bn over the next two years.

Von Hammerstein has 25 years of experience in the German and European real estate markets, working in senior positions across most risk asset classes, predominantly in commercial real estate.

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PEU: Germany is ‘hot’ in terms of investment demand so won’t it be challenging for Patron to invest the allocation over a two-year period?

GvH: Yes, Germany is hot and investments in all asset classes will remain a challenge for a while. However, given the federal structure and the fact that the industry is dominated by small and midsize players, there are still attractive investment opportunities to be unearthed.

PEU: What property segments and locations will Patron focus on? Will Patron back development projects?

GvH: Patron is less focused on specific property segments and more focused on opportunities that make sense and offer good returns. Having said that, any liquidity-restrained borrower is a possible partner as long as their business idea, development vision or existing real estate repositioning strategy is convincing. That could be offices, retail, logistics, residential or managed real estate like hotels, care homes or student housing. Patron would definitely back development projects as it has done in the past.

PEU: To what extent are Austria and Switzerland (German-speaking part) also on your radar and what will you be looking for in these markets?

GvH: The focus for Austria and Switzerland is the same as for Germany, but naturally taking into account the smaller sizes of the countries and the very different regional supply and demand situations.

PEU: Given your banking background, how important will ‘distress’ and ‘constrained borrowers’ be in the investment strategy?

GvH: We will definitely continue to talk to the banks to understand their loan portfolios, their strategies, their needs and recommendations. We know, due to the tighter debt financing regulations, that we can assist the banks in not only supporting constrained borrowers but also enabling new business with their existing clientele.

PEU: How did the relationship develop with Patron, and what prompted you to join the team?

GvH: I have known Keith [Breslauer, founder and managing director of Patron Capital] for a very long time, long before he set up Patron Capital and I have always liked his sharp intellect, his detailed market knowledge and his drive for success. When he asked me to assist his team in expanding Patron’s footprint in Germany it was an easy decision to say ‘yes’.

PEU: What do you do to relax when not thinking about real estate investment?

GvH: I have a wonderful family with four children at home. They keep me on my toes and, believe it or not, it is relaxing in a way to see them grow up so wonderfully.