Patrizia AG has agreed to invest circa €600m on behalf of its clients in a high-quality Barcelona residential portfolio through its pan-European open-ended residential flagship fund, Living Cities. The transaction, once closed, will significantly increase Patrizia’s current residential AUM of €16bn. The portfolio in Barcelona comprises 10 residential assets and consists of a mix of newly completed buildings and buildings that will be constructed during the course of this year, complete with additional services like gyms, co-working spaces, concierge, lounge areas and swimming pools.
“All investment decisions for our Living Cities fund are supported by data intelligence analytics that measures the attractiveness and future potential of the assets we target. In combination with our strong local knowledge, over 200 residential real estate professionals, plus our expert alternatives team, we delivered on a complex, structured investment for our clients. Using our AI technology, we found that the Barcelona assets we have purchased are all very well positioned in their respective macro and micro-locations in terms of their proximity to amenities with exciting future growth prospects,” said Sebastian Dietert, Fund Manager of the Living Cities Fund at Patrizia.“Barcelona, like all other cities we invest in, offers stable income return and long-term capital growth. For connectivity and innovation alone, Barcelona consistently ranks in the top quarter of our Patrizia European Living Cities Report which measures over 100 cities also for their affordability and liquidity, helping clients develop a truly diversified European residential portfolio. And yet, Barcelona is undersupplied and underdeveloped for attractive build-to-rent schemes.”
“The Living sector, especially multifamily, continues to be very resilient among the economic fluctuations of the Covid-19 pandemic, I am delighted that Living Cities is a strong performer. We raised over €950m in fresh capital for the fund in the last 12 months, at the height of the global Covid pandemic. At the end of Q3 2021, we achieved 10.7 % total return year over year for our clients, so we are on track to beat our own annual target of between 6 and 7% return for our fund,” said Nathalie Winkelmann, Living Cities Fund Director and Head of Residential Fund Management at Patrizia. “With this large Barcelona portfolio now secured and further investments on the horizon for Living Cities in some of Europe’s most liveable and vibrant cities, Patrizia continues to strengthen its market-leading position in the stable and highly attractive residential segment.”