- What PATRIZIA has launched a new fund focusing on Europe’s residential markets
- Why Open-ended fund has €650m of seed assets
- What next It is expected to grow to €1bn over next year
PATRIZIA has launched a core pan-European residential fund for institutional investors with seed assets of €650m.
The PATRIZIA Living Cities Residential Fund has already invested in 12 European residential markets, including an income-producing German residential portfolio. PATRZIA expects the open-ended fund to grow to over €1bn in assets next year.
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. PATRIZIA has said it will have an LTV of 35% and 20% of the fund will be 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 nine-building German residential portfolio, which is 99.5% let and totals 1,198 apartments.
Anne Kavanagh, chief investment officer at PATRIZIA, said: “We are thrilled to have successfully launched this new flagship residential fund to capitalise on the exciting opportunities available within the European residential sector and the strength and depth of our experience in this market and our fund management capabilities. We’d like to take this opportunity to thank our investors for their early commitment which demonstrates their confidence in our team and strategy. Living Cities is already creating enormous interest among investors due to the strong growth potential in Europe’s residential sector.”
Sebastian Dietert, fund manager, Living Cities at PATRIZIA, said: “To have locked in a seed portfolio of EUR 650 million is testament to our deal making capability and our ability to secure very attractive assets for our clients. The composition of the current Living Cities portfolio reflects the essence of this fund, namely to provide stable income with a long-term capital growth prospects in strong micro locations. In addition, we have a pipeline of approximately EUR 1.5 billion in additional acquisition targets thanks to our strong local expertise.”
