Patrizia launches 2nd commercial fund targeting €600m

Germany's Patrizia Immobilien has launched its second commercial fund, Gewerbe-Immobilien Deutschland II, with a target volume of €600 mln.

'The target volume of the new fund will be almost twice as much as that of the first,' commented Jochen Reith, Group head of Institutional Clients at Patrizia.

The company said the fund's equity was fully placed in a short amount of time with 30 investors including savings banks, cooperative banks, professional superannuation schemes and pension funds.

The vehicle will be seeded with the recently-acquired Oval Office building, offering 26,000 m2 in Hamburg’s City Nord district. The asset was completed in 2005.

Patrizia's first commercial fund, Gewerbe-Immobilien Deutschland I, was launched in July 2012 as a traditional pool fund through which institutional investors were able to invest in core cmmercial assets throughout Germany. The fund had a target volume of around €350 mln, which was fully invested in less than 36 months. Overall, the fund holds 11 assets in locations such as Dusseldorf, Frankfurt, Hamburg and Munich.

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'The success of the first fund made us all the more confident about our plans to launch another fund for this asset class,' said Reith. 'The sharp rise in demand confirms our view that institutional investors are increasingly looking for knowledgeable partners for their property investments.' He continued: 'They are looking for experts who can offer all-round management of their investment, from the purchase and property, asset and fund management to sale, from a single source.'

Commercial real estate accounts for over half of Patrizia's €16.8 bn portfolio under management, or €8.6 bn. They include office and retail properties, as well as hotels and care homes. Overall, Patrizia manages 27 funds with a target volume of €11.3 bn.