Patrizia Immobilien's asset management arm, Patrizia Kag has been appointed to manage a new fund which will be created through the spin-off of VPV Lebensversicherungs' real estate assets.

Patrizia Immobilien's asset management arm, Patrizia Kag has been appointed to manage a new fund which will be created through the spin-off of VPV Lebensversicherungs' real estate assets.

The Augsburg-based company said on Wednesday that it has signed an agreement with the German insurance group VPV for the sale of a portfolio of 39 properties to a new vehicle, which will have an initial value of over EUR 180 mln.

'With the launch of the VPV Immo Patrizia I Fonds we have laid the foundation for many years of successful cooperation', said Wolfgang Egger, CEO of Patrizia Immobilien. The new fund confirms the company's strategy of creating investment instruments tailored to the needs of institutional investors,' he added.

The portfolio, with total floor space of 148,000 m2, comprises 20 commercial properties with 117,000 m2 and 19 residential properties covering around 31,000 m2. The assets are located across Germany, focusing on the areas of Cologne, Nuremberg, and Stuttgart.

'We were searching for a real estate asset manager that was optimally suited to our requirements profile,' noted Gerhard Steck, member of the VPV's managing board. 'It was particularly important for us to gain a partner with proven experience in fund management and that was represented nationwide and covered all real estate services.'

VPV launched a tender process last year to appoint the manager of the portfolio. The service range spans from asset and fund management through to certified property management.

With the launch of the new vehicle, Patrizia's asset management arm manages real estate worth EUR 1 bn in Germany.