German property group Patrizia announced on Thursday that it has raised €220 mln of new equity this year for the Patrizia PanEuropean Property Limited Partnership, the firm’s flagship core open-ended balanced fund. The new capital has been secured from 11 new institutional investors.
PanEuropean, which has outperformed every fund in MSCI’s Pan-European Property Fund Index on a 5-year annualised basis, was also recently awarded a 5-star Gresb score, reflecting the fund’s outstanding ESG credentials, including its Net Zero Carbon strategy. The Fund has retained its number one ranking among its Gresb peer group for the second year running.
PanEuropean is a Luxembourg based, open-ended, balanced fund with a core strategy that specialises in the acquisition and management of mainly commercial property located in major cities and large conurbations in Western Europe and Scandinavia. The Fund’s lower risk core income and growth investment style is characterised by a stable running yield enhanced by active management and capital appreciation through asset improvement, re-positioning, and timely sales.
PanEuropean’s fund management team is led by Flavio Casero, fund director, and Amirali Kasraie, fund manager. Flavio Casero commented: ‘It is a major achievement that PanEuropean continues to be recognized for both its sustainability credentials and its outperformance of its competitors. We would like to take this opportunity to thank our investors for their support and commitment to the Fund, particularly throughout these uncertain times.’
Amirali Kasraie, fund manager at Patrizia, added: ‘The Fund’s robust core profile and low-risk return targets remain attractive to new capital, with the arrival of some €220 mln of new equity. As we look to 2021 and beyond, we remain well positioned to strategically grow and further diversify the portfolio by accessing opportunities through PATRIZIA’s expansive European network.’
This year, the Fund has carried out over €330 mln of acquisitions, increasing the total GAV to over €800 mln, with a view to exceeding €1 bn in 2021. The most recent transactions include the acquisition of a 75,000 m2 logistics asset let to Amazon in Madrid, Spain, and a 54,000 m2 logistics asset in Veghel, the Netherlands.
Activity this year has increased the Fund’s overall weighting to the logistics sector to about a third, and the office sector to a further third, with the balance comprising residential and food-anchored retail. The portfolio has demonstrated its resilience throughout the Covid-19 pandemic, with occupancy remaining high at 98% and rent collection currently at 99%.
