PATRIZIA Immobilien AG raised equity capital of more than €2.4 billion for its European activities from leading international investors in 2013. This trend is continuing in 2014. The Korean Teachers’ Credit Union (KTCU), a renowned Korean investor, is providing mezzanine capital of £43 million to finance the Winnersh Triangle business park near London, which PATRIZIA acquired in summer 2013 for a price of £245 million via its subsidiary PATRIZIA UK together with its joint venture partner Oaktree Capital Management, L.P. “This investment once again shows us how much confidence is placed in PATRIZIA by globally operating institutional investors – in Germany, in Europe and also in Asia,” says Wolfgang Egger, CEO of PATRIZIA Immobilien AG.
“Particularly in highly competitive locations such as London and Paris, our excellent, broad-based local teams enable us not only to make traditional core investments, but also to venture into areas where there is still significant potential to be leveraged with active asset management,” says Egger. “This is of course an attractive proposition for many investors and sets us apart from many competitors. In this respect and also in terms of access to properties, we benefit in particular from the fact that we can cover the entire real estate value chain from property management to development in Europe. Investors value our specialist real estate expertise very highly.”
PATRIZIA Immobilien AG, which has been listed on the stock exchange since 2006 and is still managed by the owners and now works with more than 130 institutional investors worldwide. The investor base has also been expanded internationally. Firstly, the number of international investors has more than doubled over the past two years, and secondly, greater regional diversification has been achieved. Egger comments: “Within Europe, institutional investors from Austria, Denmark, France, Germany, the Netherlands, Sweden, Switzerland and the UK invest in real estate via PATRIZIA.”
PATRIZIA has set itself the goal of becoming one of Europe’s leading real estate investment companies by 2015 and is well on the way to achieving this. Its real estate transaction volume in Europe amounted to €4.9 billion in 2013. Furthermore, with the acquisition of GBW AG (€2.5 billion) and Süddeutsche Wohnen GmbH (€1.3 billion), the company conducted the two biggest European real estate transactions in 2012 and 2013 for institutional investors.