Patrizia targets AUM of EUR 10b by 2015

Listed German property company Patrizia Immobilien aims to increase its assets under management to over EUR 10 bn by 2015, after coming close to the EUR 7 bn mark earlier this year following the EUR 1.4 bn residential deal with German bank LBBW.

Announcing its 2011 earnings figures on Wednesday, Patrizia said it would pursue further co-investments in the future as a way of strengthening its services activities. The company already acts primarily as a portfolio holder for insurance companies, pension fund institutions and savings banks. In the LBBW transaction, Patrizia led a broad-based consortium to acquire 21,000 residential units in Germany. ‘With this growth, the profit share of the service business will climb to 50% by the end of 2013,’ said CEO Wolfgang Egger.

The Augsburg-based company reported earnings before tax (EBT) from operations of EUR 16.7 mln in 2011, up 30.7% on the EUR 12.8 mln achieved in 2010. The improvement mainly reflected higher income from services. Earnings before tax and interest (EBIT) fell 10.8% to EUR 54.6 mln from EUR 61.2 mln a year earlier as revenues dropped 20.8% to 2.7 bn from EUR 3.4 bn in 2010.

‘We expect to achieve another increase in operating earnings of approximately 20% in the 2012 fiscal year. For 2013, too, we anticipate further stable earnings development,’ Egger said.

A total of 1,842 apartments were disposed of last year by way of individual and block sales, marking an increase of 2.2% on the 2010 figure. For 2012, the company expects sales figures to be on a similar scale, amounting to around 1,800 apartments.

Patrizia reduced its bank liabilities by EUR 148 mln (17.6%) to EUR 693.4 mln last year. The company's equity ratio improved accordingly by 15.6% to 28.1% as of 31 December 2011.