- PanEuropean, PATRIZIA’s flagship open-ended, core, balanced fund strategy recently acquired a portfolio of three logistics assets in France off-market, fully let to Kuehne & Nagel
- The Fund has raised over EUR 320 million equity throughout the Covid pandemic
- PanEuropean manages a well-diversified, robust portfolio with low-risk profile, with a fund LTV under 25%, 100% occupancy, an 8.8-year WAULT, and fund financing fully hedged for 6.4 years on average
- The Fund’s 5-year annualised return up to 30 September 2022 outperformed the equivalent MSCI PEPFI benchmark by 15%1
- PanEuropean was recently awarded 5 GRESB Green stars for strong ESG credentials and ranked at the top of its peer group for sustainability
Augsburg / Luxembourg / Dublin, 19 December 2022. PATRIZIA, a leading partner for global real assets, has announced that its PATRIZIA PanEuropean Property Limited Partnership (‘PanEuropean’ or the ‘Fund’) has reached a total gross asset value of c. EUR 1 billion. PanEuropean reached this milestone following the acquisition of three logistics assets in France on behalf of its institutional clients.
PATRIZIA’s flagship, open-ended, core balanced fund recently acquired two warehouses in Lyon and one in Strasbourg from the international logistics group Kuehne & Nagel in an off-market transaction, for an undisclosed sum. The sale-and-leaseback of the 34,000 sq m portfolio, which also includes Kuehne & Nagel’s new French headquarters, is based on a 9-year green lease and complies with the French government’s energy consumption reduction targets.
This latest achievement is fully in line with PATRIZIA’s focus on rapidly growing its flagship investment strategies. The strategy of growing flagship funds to critical mass will continue to drive the growth of PATRIZIA’s recurring income.
Samy Bougandoura, Head of Transactions for PATRIZIA France, said: “Despite the current uncertain economic climate in Europe, we are able to source and invest in highly attractive assets like these by combining PATRIZIA’s proprietary data intelligence tool, the Logistics Impact Solution (LIS), with local expertise across Europe. We expect demand for the best logistics assets, including light urban industrial, cold storage and transportation hubs, to remain sustained on the back of global megatrends such as e-commerce, urbanisation and digitalisation.”
PanEuropean – Continental Europe’s longest running open-ended fund PanEuropean’s veteran fund management team, which has mastered several economic cycles, is led by Flavio Casero, Fund Director, whose track record with the Fund began in 2004.
“Throughout the pandemic and current market uncertainty, our focus has centered on sustainability, quality of tenants, future proofing the portfolio through a mix of proactive asset-level enhancements, targeted acquisitions and sales, while consistently securing long-term debt at fixed cost. As a result, PanEuropean has been able to raise over EUR 320 million since 2020 and continues to attract interest from long-term institutional capital with no outstanding redemptions. On behalf of the entire PATRIZIA team, we would like to thank our investors for their continued support,” said Flavio.
PanEuropean’s stable and resilient performance is underpinned by a strong emphasis on risk management and a highly selective investment approach focused on best-in-class logistics, living and alternatives assets. With a fully let portfolio comprising logistics assets (44%), office (22%), living (25%) and retail (9%), a weighted average unexpired lease term (WAULT) of 8.8 years and a reversionary potential of 11%, investors have benefitted from a strong 5-year annualised return that has outperformed by 15% the equivalent MSCI PEPFI benchmark of 5.7% in the same period1.
PanEuropean was also recently awarded a 5-star GRESB score, reflecting the Fund’s outstanding ESG credentials, including its Net Zero Carbon strategy. The Fund ranked first amongst its GRESB peer group for sustainability performance.
Over the last 12 months, the Fund has invested over EUR 330 million, which included a student accommodation portfolio in Barcelona while securing material profits through the timely disposal of office, retail and logistics assets totalling EUR 181 million.
PanEuropean’s core strategy specialises in the acquisition and management of mainly real estate located in major cities and large conurbations in Western Europe and Scandinavia. The Fund’s lower risk core income and growth investment style is characterised by a running yield enhanced by capital appreciation through low-risk asset management initiatives, re-positioning, and timely sales.
PATRIZIA: A leading partner for global real assets
With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 38 years. PATRIZIA manages more than EUR 57 billion in assets and employs over 1,000 professionals at 28 locations worldwide. Through its PATRIZIA Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped around 250,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 23 years. You can find further information at www.patrizia.ag
1 Past performance is not indicative of future performance.
This is a marketing communication.
This press release is issued by PATRIZIA Investment Management S.à r.l. which is the manager (AIFM) of the Fund. The publication of this press release is a service provided by PATRIZIA SE to PATRIZIA Investment Management S.à r.l. The information contained herein is directed only at professional clients having their country of origin in Ireland. Distribution to retail clients or semi-professional investors (or similar client categories) in general and to any other countries than the once mentioned before is prohibited. For other potential investment options, e.g. via feeder funds for other jurisdictions please check further details here: PanEuropean | PATRIZIA Institutional Clients & Advisory GmbH
Please refer to the relevant sales documents of the investment funds described herein before making any final investment decisions. Insofar this marketing communication refers to sustainability-related aspects of the investment funds described herein, please do not only consider these aspects when investing in these investment funds, but the decision to invest in the investment funds should take into account all the characteristics or objectives of the investment funds as described in the relevant sales documents.
The information contained herein is directed only at professional, eligible or well-informed investors or clients and intended solely for use by the recipient – distribution to retail clients or well-informed investors is prohibited. No part of this document or the information herein may be distributed, copied or reproduced in any manner, in whole or in part, without our prior written consent. This document is for information and illustrative purposes only. It does not constitute advice, a recommendation or a solicitation of an offer to buy or sell shares or other interests, financial instruments or the underlying assets, nor does this document contain any commitment by PATRIZIA SE or any of its affiliates. Whilst prepared in good faith, the information contained in this document does not purport to be comprehensive and has generally not been verified (in particular if third party information has been used).
The document has not been filed or approved by any local financial authority.
PATRIZIA SE and its affiliates provide no warranty or guarantee in relation to the information provided herein and accept no liability for any loss or damage of any kind whatsoever relating to this material. The information herein is subject to change without notice. All information is qualified entirely by the relevant sales documents relating to any financial product or services. The sales documents for investment funds (including mandatory information documents for professional clients, annual – and as the case may be – semi-annual accounts and where available and applicable the key information document) are available free of charge from us and the manager of the investment fund.
Visit https://www.patrizia.ag/en/product-specific-country-disclaimers/ for further information.
September 2022 PATRIZIA Institutional Clients & Advisory GmbH
Phone: +44 7881 276427