Patrizia purchases 1,000 apartments in Sweden

Frankfurt-listed Patrizia has purchased 1,018 residential units in Greater Stockholm in its first acquisition in Sweden for its special real estate fund 'PATRIZIA Euro City Residential Fund I'. The properties have a total floor space of 94,000 m².

Patrizia said it had agreed to keep the vendor's identity and the transaction volume confidential. The real estate purchased consists of apartment portfolios in buildings of one to three floors and detached houses. They are located in the Vårberg and Haninge-Jordbro districts of Greater Stockholm.

'Population growth of over 20% is expected in this region in the next few years. There is already huge demand for property in the area, something which can be clearly seen in the waiting lists for vacant apartments. The apartments we have purchased are also showing no vacancy rates,' commented Patrizia director Michael Vogt.

The EUR 400 mln Patrizia Euro City Residential Fund I is the second in a series of themed funds with a clear focus by type of use and investment region. The special fund invests solely in European residential real estate at locations displaying above-average purchasing power and positive population development.

Patrizia said it expects to reach the target volume for the fund in the next two years and will be primarily invested in Sweden, Finland, France, the Czech Republic, the Netherlands and Germany.

'We have now placed 100% of the planned equity from the German Euro City Residential Fund I. For this reason, we are optimistic that we will successfully achieve this challenging task we have been set,' Vogt added.

Patrizia was founded as an asset management company 20 years ago. It expanded into the launch and management of special real estate funds in 2007. The company manages real estate assets worth EUR 3 bn.