Patrizia Immobilien is launching a new specialised fund via its subsidiary Patrizia Kapitalanlagegesellschaft in a move to further expand its fund business. The fund will comprise assets valued at EUR 300 mln following conclusion of the investment phase.
Patrizia Immobilien is launching a new specialised fund via its subsidiary Patrizia Kapitalanlagegesellschaft in a move to further expand its fund business. The fund will comprise assets valued at EUR 300 mln following conclusion of the investment phase.
Wolfgang Egger, CEO of Patrizia Immobilien noted: 'The trend toward indirect real estate investment has gained further momentum over the course of the financial crisis. We are very well positioned to exploit the opportunities this brings. Now more than ever our strategy three years ago of founding an asset management company is proving to be correct.'
Patrizia recently launched a transfer fund of EUR 180 mln; Patrizia KAG’s fourth fund focuses on new investments in residential real estate. 'Residential real estate is considered very much in demand as it is recognized as a shelter in the storm,' says Egger. 'In the right locations it holds its value and generates calculable income. It thus provides everything that is important to institutional investors, enabling them to meet their obligations over the long term without taking a risk. A first purchase amounting to around EUR 10 mln has already been notarized for this fund.'
Founded in 2007, Patrizia KAG is now responsible for a total investment volume of EUR 1.3 bn. In addition to the transfer fund of around EUR 180 mln,
the first two funds launched, the German Residential Fonds I and the Euro City Residential Fonds I, each represent an investment volume of EUR 400 mln. Around EUR 250 mln has already been invested in these funds.
According to recent surveys, in the next two years institutional investors are planning to increase their real estate assets as a proportion of total investment volume by one percentage point, corresponding to a rise of EUR 20-25 bn.
Patrizia currently manages real estate assets worth EUR 3 bn.