Patrizia seals EUR 140m German resi purchase

Patrizia Immobilien has acquired 986 apartments and three commercial units in Germany on behalf of a residential fund for EUR 140 mln. The listed German real estate company said its WohnModul I fund was joined in the acquisition by an unnamed German pension fund.

The properties, acquired in two transactions, are in the Bogenhausen district of Munich and Germering. They were predominantly built at the end of the 1960s or the beginning of the 1970s. Patrizia said the apartments are in very good condition and have a vacancy rate of less than 1%, attributable only to tenant turnover.

The residential complex in Germering was sold by WWK Grundbesitz, while the residential facility Bogenhausen was purchased from a foundation.

Patrizia aims to sell the residential portfolio in individual transactions to tenants, owner-occupiers and private investors in the years to come. 'With WohnModul I, we have broadened the investment horizon for institutional investors in two respects. The first is that project developments and asset repositioning portfolios can also be bought. The second is that apartments can be sold during the investment phase, either by means of block or individual sales,' said Wolfgang Egger, CEO of Patrizia Immobilien.

The German property company has already invested over EUR 300 mln in the co-investment with the pension fund since it was first launched in September 2011. Egger: 'Patrizia is increasingly developing into a real estate investment house. The objective is a sustained increase in assets under management. We will achieve this by developing new products and services for our investors, not only in residential, but also commercial real estate. In terms of organisation and personnel, Patrizia is now structured in such a way as to enable us to take on the management of new real estate assets worth around EUR 1 bn every year.'

Patrizia presently manages real estate assets worth over EUR 5 bn.