German company Patrizia has announced that its KAG subsidiary is launching its fifth special real estate fund, Patrizia Domizil I. The special fund has a total investment volume of EUR 300 mln and was set up for an institution for professional retirement pensions.
German company Patrizia has announced that its KAG subsidiary is launching its fifth special real estate fund, Patrizia Domizil I. The special fund has a total investment volume of EUR 300 mln and was set up for an institution for professional retirement pensions.
Patrizia Domizil I focuses on properties that are 100% residential but also commercial buildings with a residential component. Patrizia invests in existing and
newly built properties in the metropolitan regions of Hamburg,
The new fund will focus on Cologne/Düsseldorf/Bonn, Munich and the Rhine-Main area. Patrizia said that it prefers energy-efficient properties that comply with the German Energy Savings Ordinance 2009 (EnEV 2009) for the Domizil I portfolio.
'Residential properties have emerged the winner of the economic and financial crisis.' said Michael Vogt, spokesperson for the management of Patrizia KAG. 'Institutional investors in particular favour residential real estate investments as a safe capital investment with stable cash flow. In the course of this, they value the better risk distribution in indirect investments such as residential real estate funds due to the lack of cluster risks and the high level of value stability in the right choice of real estate without incurring higher management expenses.'