PATRIZIA raises €400m through six funds in the past two years

PATRIZIA Immobilien AG, an investment manager in the real estate market across Europe, has launched six funds over the past two years for private investors with an investment volume of more than €400 million ($490 million).

In 2016, PATRIZIA launched two funds for private investors, PATRIZIA GrundInvest Kopenhagen Südhafen and PATRIZIA GrundInvest Den Haag Wohnen. The fund series, which is to include additional funds as well, was PATRIZIA’s response to the urbanization megatrend.

Five of the funds have already been fully placed, with capital often collected much faster than anticipated from investors. In addition to private investors, PATRIZIA has attracted family offices, foundations, pension funds and other semi-professional investors to real estate investments.

Andreas Heibrock, managing director of PATRIZIA GrundInvest, explains that given the persistently low interest rates, PATRIZIA is seeing “strong demand” for its private investor funds, which aim for annual payouts of between 4 and 5 percent before taxes. “Within just 20 months, more than €200 million euros [$244 million] of equity was placed,” said Heibrock. In the past year alone, PATRIZIA was able to nearly double the capital it raised compared to 2016, said Heibrock.

For the majority of funds, the targeted annual payout to investors was exceeded during both 2016 and 2017 as well.

The series will continue throughout 2018 with mutual funds. A residential and commercial building in the center of Garmisch-Partenkirchen, a location in Southern Germany, was recently acquired.

In addition, just before Christmas, PATRIZIA purchased another property in Dresden. However, since this is a construction project, this fund will be placed earliest in 2019. The equity volume will amount to around €30 million ($38 million).

Currently, investors can still participate in the PATRIZIA GrundInvest Kopenhagen Südhafen fund, which invests in a residential complex with 127 apartments. Through this fund, private investors can participate in the dynamic growth of the Danish metropolitan region of Copenhagen.

Also in preparation is a fund with a new inner-city mixed-use building in the Rhine-Ruhr metropolitan area.