PATRIZIA, the global partner for pan-European real estate investment, announces the launch of the PATRIZIA Living Cities Residential Fund ,an open-ended fund with a core strategy which currently has EUR 650 million of seed assets and is expected to grow to over EUR 1 billion in assets next year.
The Fund is PATRIZIA’s flagship, core pan-European residential fund for institutional investors and is underpinned by the Company’s 35 years’ experience of both investing in the residential sector across Europe and managing open-ended discretionary funds. PATRIZIA has access to local deals through its unrivalled network of 200 local residential investment professionals.
A number of existing and new global institutional investors from Europe and Asia have committed to the fund with further parties in advanced due diligence.
The Fund, which will have a 35% LTV, will be targeting Europe’s most exciting metropolitan areas. It draws on PATRIZIA’s proprietary European Cities Ranking model to focus on long term buy-to-hold strategies which will include 20% of the Fund being invested into the increasingly sought after “‘Living”’ residential category including co-living, retirement and student housing.
The Fund’s seed portfolio was assembled through a series of separate transactions. The most recent transaction is the purchase of a German residential portfolio, which is 99.5% let. The nine building portfolio provides 1,198 apartments all let to the private sector across a total rental area of 96,500 sqm in six of Germany’s leading cities.
The other most notable transactions include two apartment developments. In Germany, in an emerging area of Munich’s West End, Green Levels has been acquired and will provide 192 apartments across 14,190 sqm and in Copenhagen, Denmark, the fund has bought a 76 apartment, 8,383 sqm development in the highly regarded Amager Beach Park area. Both projects will be delivered to the private rental market during 2020. In addition, a dozen assets were purchased in the Dutch cities of Amsterdam and Rotterdam.
Living Cities is poised to capitalise on the continued resilience of the European residential sector. Liquidity across many of Europe’s major urban areas has increased demonstrably since 2009, with investment volumes growing from EUR 5 billion in 2009 to EUR 50.8 billion in 2018, reflecting the maturing nature of this asset class and the vast number of opportunities available to investors. Urbanisation combined with population growth is resulting in housing demand surpassing macroeconomic or political volatility.
Source : PATRIZIA AG