PATRIZIA launches its ninth and tenth private investor funds

Through its subsidiary, PATRIZIA GrundInvest, PATRIZIA Immobilien AG is further expanding its range of real estate private-investor funds and encountering strong demand from investors. Some three years after starting its business for retail investors, the investment manager for European real estate is launching its tenth private investor fund, PATRIZIA GrundInvest Smart Living Frankfurt.

Since the beginning of July, investors can in addition invest in the new PATRIZIA GrundInvest Frankfurt/Hofheim. PATRIZIA’s concept of offering private and semi-professional investors real estate investments with an expected annual pre-tax payout of 4 percent to 5 percent is paying off. Seven funds have already been fully placed. In addition, PATRIZIA GrundInvest Garmisch-Partenkirchen, which was launched in April, has almost collected its target equity volume within just two months. In total, PATRIZIA has already invested in properties worth more than €700 million ($812 million) for its private-investor funds.

“The expected annual yields of 4 to 5 percent before taxes are a strong argument, especially in this continuing low-interest-rate environment,” said Andreas Heibrock, managing director of PATRIZIA GrundInvest. “So far, all our funds have reached or exceeded their projected annual yields. Payouts from the funds launched so far averaged 5.04 percent for 2017. This, and the convincing usage concepts of our properties, make our range of funds attractive not only for retail investors, but also for smaller foundations, pension funds and family offices.”

The first fund, PATRIZIA GrundInvest Frankfurt Smart Living, will soon be available and allows investors to invest in micro-housing concepts in metropolitan Frankfurt am Main. The complex of 221 residential units comprising a rentable area of around 4,600 square meters (50,000 square feet) is located in Frankfurt’s Sachsenhausen district. The newly built residential complex consists of apartments of different sizes from 15 square meters to 33 square meters (161 square feet to 355 square feet).

“Frankfurt is one of Germany’s fastest-growing metropolises. Its population is expected to grow 14.2 percent by 2030,” explains Joachim Fritz, managing director of PATRIZIA GrundInvest. “At the same time, the share of single-person households is growing constantly, especially in business hubs like Frankfurt. We are therefore convinced that our new residential complex will match a long-term growing housing demand.” Like for most of PATRIZIA’s private-investor funds, the minimum investment amount for the PATRIZIA GrundInvest Smart Living Frankfurt is just €10,000 ($11,611).

The second fund, PATRIZIA GrundInvest Frankfurt/Hofheim, a private-investor fund investing in a local shopping center in Hofheim, just outside Frankfurt, is now being placed. The property, which was completed in 2010, has been lent to a large number of tenants, including Edeka, Lidl, Müller, H&M, Woolworth, Deichmann, etc. The remaining average lease term is around seven years.

The new private-investor funds expand PATRIZIA’s product range. Further products are in preparation, e.g. for properties in Berlin and Mülheim for which contracts have already been signed.