PATRIZIA AG has agreed to invest around €600 million in a high-quality residential portfolio in Barcelona through its pan-European Living Cities fund.
- Despite the global pandemic, PATRIZIA raises more than €950m in fresh capital in the last 12 months for its Living Cities open-ended residential fund and increases its equity to reach the first strategic milestone of €1.5bn
- PATRIZIA continues to strengthen its market leadership position in the residential segment with its diversified core pan-European residential strategy by acquiring 10 well-located high-quality residential assets in Spain, in addition to recent acquisitions in Denmark, Finland, Ireland, UK and Sweden
- The Living Cities fund has a strategic ambition to reach at least €2 billion of equity in 2022 with new investments across Europe underway
- Backed by data intelligence technology combined with strong local expertise, including more than 200 residential real estate professionals, Living Cities delivered strong total returns of 10.7% year-over-year at the end of Q3 2021
Augsburg/Madrid 18 January 2022. PATRIZIA AG, a leading partner for global real estate assets, has agreed to invest approximately €600 million on behalf of its clients in a high-quality Barcelona residential portfolio through its flagship open pan-European residential fund, Living Cities. The transaction, once completed, will significantly increase PATRIZIA’s current residential assets under management by €16 billion.
The portfolio in Barcelona includes 10 residential assets and consists of a mix of newly completed buildings and buildings that will be built during this year, with additional services such as gyms, coworking spaces, concierge, lounges and swimming pools.
“All investment decisions for our Living Cities fund are supported by data analytics that measure the attractiveness and future potential of the assets we target. Combined with our strong local knowledge, over 200 residential real estate professionals, as well as our team of alternative experts, we have delivered a complex and structured investment for our clients. Using our AI technology, we have found that the Barcelona assets we have purchased are all very well positioned in their respective macro and micro locations in terms of proximity to amenities with exciting future growth prospects,” said Sebastian Dietert, fund manager of Living Cities. Funds at PATRIZIA.
“Barcelona, like all the other cities we invest in, offers stable income 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 affordability and liquidity, helping clients develop a truly European residential portfolio. diversified. And yet Barcelona is undersupplied and underdeveloped for attractive build-to-let schemes.
Further growth and strong performance expected for Living Cities Fund
With this latest strategic investment in Living Cities, the fund now has approximately €1.5 billion in equity and is targeting the growth milestone of at least €2 billion in total equity in 2022. Additionally, the fund has generated strong returns this year for its clients which include pension funds and insurance companies from a mix of European, Middle Eastern and Asian economies.
Other recent acquisitions for Living Cities include a significant portfolio of student accommodation purchased in Denmark and a residential scheme in Ireland, totaling approximately 1,500 units, a Build-to-Rent scheme in Reading, UK, of 281 apartments, a 24-storey residential tower complex in Helsinki, Finland, as well as a residential development and multi-family asset in Sweden.
“The Living sector, especially multi-family, continues to be very resilient to the economic fluctuations of the Covid-19 pandemic, I am delighted that Living Cities is performing very well. We have raised over €950 million in fresh capital for the fund over the past 12 months, at the height of the global Covid pandemic. At the end of Q3 2021, we achieved a total year-over-year return of 10.7% for our clients, so we’re on track to beat our own 6-7% annual return target for our fund,” said Nathalie Winkelmann, Living Cities Fund Manager and Head of Residential Fund Management at PATRIZIA. Barcelona’s extensive portfolio now secure and with new investments on the horizon for Living Cities in some of Europe’s most liveable and dynamic cities, PATRIZIA continues to strengthen its position as market leader in ns the stable and very attractive residential segment.”
Living Cities is one of PATRIZIA’s ESG funds that complies with Article 8 of the EU SFDR. As an ESG fund, Living Cities promotes clear ESG objectives, such as providing 100% renewable energy for all common areas in buildings and using energy-efficient building materials. Living Cities helps build sustainable, vibrant communities close to amenities like kindergartens, schools, green spaces and supermarkets. The fund is closely aligned with five UN Sustainable Development Goals.
PATRIZIA: A leading partner for global real estate assets
As a globally operating firm, PATRIZIA has been providing investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 37 years. PATRIZIA manages over €48 billion in assets and employs over 800 professionals at 24 locations worldwide. PATRIZIA has been impact investing since 1984. And through the PATRIZIA Children’s Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped approximately 250,000 children in need around the world to access education and thus given them the chance for a better life over the past 21 years.
Further information can be found at www.patrizia.ag
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