PATRIZIA expands its fund business

PATRIZIA recently launched a transfer fund of EUR 180 million; PATRIZIA KAG’s fourth fund focuses on new investments in residential real estate. “Residential real estate is considered very much in demand as it is recognized as a shelter in the storm,” says Egger. “In the right locations it holds its value and generates calculable income. It thus provides everything that is important to institutional investors, enabling them to meet their obligations over the long term without taking a risk. A first purchase amounting to around EUR 10 million has already been notarized for this fund.”

PATRIZIA KAG, which was founded in 2007, is now responsible for a total investment volume of EUR 1.3 billion. In addition to the transfer fund of around EUR 180 million, the first two funds launched, the German Residential Fonds I and the Euro City Residential Fonds I, each represent an investment volume of EUR 400 million. Around EUR 250 million has already been invested in these funds.

According to recent surveys, in the next two years institutional investors are planning to increase their real estate assets as a proportion of total investment volume by one percentage point, corresponding to a rise of EUR 20-25 billion. Specialized funds will benefit from this in particular, as they bring all the advantages of a regulated instrument while offering the investor additional strategic and operating flexibility. Egger: “In addition to professional fund management, first and foremost long-standing competence in the real estate industry is indispensable when it comes to achieving sustainable success. Our 25 years of experience in asset and property management in the real estate sector thus place us among the top players in the market, particularly as we have our own employees based throughout Germany and cover the entire value-added chain in the property market with our over 350 qualified real estate experts. At the same time, we are one of the very small number of specialized fund providers who are independent of banks and insurance companies."