Patrizia doubles Danish portfolio with €300m of acquisitions

German investor and asset manager Patrizia Immobilien has invested nearly €300 mln in Denmark through a number of commercial and residential property acquisitions.

Augsburg-based Patrizia has snapped up a portfolio of 10 commercial properties providing around 22,000 m2 from a private individual for €170 mln. The office and retail assets are all located in the city centre, with six of them situated in Copenhagen’s central pedestrian area, called Stroget. Around 10% of the space is for residential use.

The portfolio was purchased on behalf of the recently launched Patrizia Nordic Cities fund, the company said. 'Our investors have a long-term outlook and pursue a buy-and-hold strategy,' commented Rikke Lykke, managing director of Patrizia Nordics. 'However, in order to improve cash flow we will convert smaller offices into apartments, as we are seeing high demand in this sub-market. In total, the share of residential space in the portfolio is to be increased to 20%.'

In addition to the commercial portfolio, Patrizia has also concluded various residential real estate transactions for a total of over €100 mln. The purchases, made in co-investment with an institution from Germany, involve both new construction projects and existing buildings.

The purchases lift the company's assets under management in Denmark to around €600 mln, from around €300 mln previously, Rikke added. 'Further acquisitions are planned for 2015,' she noted.

Patrizia opened an office in Copenhagen in autumn 2012.