Patrizia Immobilien has acquired Triuva, the German institutional real estate fund management business, in a move that grows Patrizia's assets under management by 50% to more than €30 bn.
The purchase price for what was formerly IVG Institutional funds was not disclosed. The vendor was the restructured IVG Group.
'This acquisition is a perfect fit for our growth strategy. It will strengthen our European network, expand our market presence and broaden the range of products and services for our clients. We will also consolidate our position as the leading independent real estate investment manager in Europe,' said Wolfgang Egger, CEO of Germany's Patrizia Immobilien.
Triuva is one of the leading providers of real estate investments in Europe. The company manages around 40 funds, partners with more than 80 institutional investors and consists of around 200 employees across its 15 European locations.
The Frankfurt-based company focuses on commercial real estate in the office, retail and logistics sectors as well as infrastructure. Currently, Triuva manages real estate assets of around €9.8 bn.
Top 10 investment managers
The Triuva acquisition will increase Patrizia’s assets under management to more than €30 bn, placing the company firmly amongst the top 10 European real estate investment managers. The addition of Triuva also broadens Patrizia's product range, enabling institutional and private investors to access new markets, asset classes and risk profiles with their investments, the company said in a statement.
'This acquisition increases the stability of Patrizia's business model through greater diversification and by ensuring an even greater share of our revenue comes from recurring asset management fees,' Egger said. 'We also offer Triuva and its clients a stable ownership structure and new opportunities. With our sound capital base, we will continue with our successful strategy and pursue attractive opportunities which benefit our investors.'
Patrizia has been active as an investment manager in the real estate market across 15 European countries for more than 30 years. Currently, the company manages real estate assets worth around €21 bn, primarily as a portfolio manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. This figure includes Sparinvest Property Investors, the €3 bn Copenhagen-based fund-of-funds manager acquired by Patrizia in October.
Financial results
The company also published its financial report for the first nine months of 2017 on Monday.
The company raised its guidance for the entire fiscal year, saying it now expected to deliver an operating income of slightly above €75 mln, up from the previous guidance of between EUR 60-75 mln.
'In 2017 our strong investment track record delivers a high volume of performance fees leading to an increase in our full-year guidance,' said Karim Bohn, Patrizia's chief financial officer.
Patrizia's operating income for the first nine months of 2017 was €46.6 mln, up 6.1% on the same period in 2016. In the period under review, total service fee income – including recurring revenues generated from management fees, transaction fees and performance fees in particular – increased by 5.2% to €128.8 mln, compared to €122.4 mln during the same period in 2016.
Assets under management (AUM) increased by €1.9 billion between January and September 2017 to €20.5 bn. With the inclusion of Sparinvest Property Investors (SPI), the Copenhagen-based fund-of-funds manager acquired by Patrizia in October, the Company expects a net increase in AUM of around €3 bn in 2017 to €21.6 bn.
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28 November 2018
Outlook 2018: Europe & Germany Investment Briefing
UBS - Opern Turm, Bockenheimer Landstraße 2-4, Frankfurt am Main, 60306, Germany | 09:00 - 11:30
This event is brought to you by Waterway Investments in association with PropertyEU.
Economic growth is lifting all boats in Europe, but Germany's position as the economic powerhouse of Europe remains assured.
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