When you invest with PATRIZIA, you’re not only investing in a robust and diversified portfolio but in 36 years of European investment experience and exceptional local knowledge. So it’s fair to say that, when it comes to sourcing and managing investment opportunities, we know what we’re talking about. With real estate openings for institutional, semi-professional and private investors, our rock-solid financials make us a strong and reliable investment partner.
Across 24 global offices, over 800 employees and over 50 fund managers are all dedicated to carefully managing our €46 billion portfolio – and we’ve tailored our solutions to meet the individual requirements of our investors, large or small.
As a stable, long-term partner, our purpose is to develop communities and build a more sustainable future. Part of this is helping children who are most in need all around the world. We give children the opportunity to lead a better life by providing access to education and health services through the PATRIZIA Foundation. For over 20 years, and through more than 20 global projects, the PATRIZIA Foundation has helped more than 220,000 children live a better, healthier life – with the promise of a brighter tomorrow.
I. We manage over €5 billion in logistics assets
Europe’s logistics sector is currently enjoying rapid growth and continues to be driven by an e-commerce boom, with customers increasingly expecting overnight or same-day delivery. This growth has been resilient – if not more pronounced – throughout the COVID-19 pandemic, and continues to be underpinned by strong market fundamentals such as the increased necessity for online shopping.
This means the demand for modern warehouses and distribution centres is rising significantly – which is good news for investors.
Nicolai Soltau, our logistics fund manager and manager of the ‘PATRIZIA Logistik-Invest Europa’ fund series, is always ahead of the curve in spotting these trends. He knows that the attractive logistics investments of tomorrow will be flexible, easily reconfigured spaces that are easy to access. And it’s this expert knowledge that allows him to carefully manage our €5 billion worth of logistics assets, delivering attractive and rewarding opportunities for our investors.
II. ‘PATRIZIA Logistik-Invest Europa’ fund series
With ‘PATRIZIA Logistik-Invest Europa I’, we’re building a pan-European logistics property portfolio (excluding markets with foreign currencies e.g. UK, Sweden).
Our approach here is to acquire and manage conventional, e-commerce and conurbation-focused logistics assets. Primary areas of focus are last-mile delivery and B2B/B2C products, which generate a stable cash flow return. In terms of property sourcing, our focus is on pre-leased new developments, sale/lease-back transactions, and top locations with low re-letting risk. Thanks to the acquisition of new buildings and the demand for logistics spaces expected to rise, these areas have great investment potential.
The current European market facilitates very attractive returns in line with risk/return profiles. With local access, motorway junctions, airports and ports, EU metropolitan markets like Germany, France, and Benelux offer a wealth of opportunity – and there are exciting new openings in Northern Europe, Spain, Portugal, and Ireland. The target cash flow return is 6.5% at an LTV of 50%.
III. Logistics is booming thanks to the rise of e-commerce
Only Germany’s automotive industry and the retail sector have managed to surpass logistics as the largest and most important segment in the nation's economy. Germany’s central location, excellent infrastructure, and state-of-the-art technology make the country a crucial and growing hub for pan-European logistics services.
According to the latest available figures, the three sectors that make up the German logistics sector (logistics companies, e-commerce businesses, and delivery services) generated a combined €267 billion in business in 2017 – that’s almost a quarter of Europe’s total revenues – and employed more than 3 million people.
This year, earnings by the country’s 60,000 logistics companies (the majority of which are SMEs), could total €280 billion according to the BVL, Germany’s national logistics association. And e-commerce is an important factor in this growth.
E-commerce revenues in Germany amounted to €53 billion in 2018, with the figure for all of Europe exceeding €317 billion – and reaching €1.6 trillion worldwide. A further gain of at least 50% is expected globally within the next five years. In parallel, changing consumer behaviour and growing shipping volumes boosted revenues in the CEP (courier, express, package) segment in Germany to €20.4 billion (an increase of 5.2% from the previous year).
Simply contact us via the form to talk to the capital markets team and learn more about exciting European investment opportunities in the logistics sector today.
Acquiring a high-quality Dutch logistics portfolio for €130.8 million
Our pan-European logistics portfolio has increased to more than €2 billion upon acquiring approximately 131,000 sqm of prime logistics space across three locations in the Netherlands. The portfolio of logistics properties was acquired from DHG, the Rotterdam-based real estate investor and developer, for €130.8 million on behalf of the ‘PATRIZIA Logistik-Invest Europa II’ fund.
The portfolio, which was completed this year, includes assets in Rotterdam, Moerdijk and Bergen op Zoom, all of which are located on the key logistics route that runs from the Rotterdam Port through the south of the Netherlands. A large part of the portfolio is suitable for the handling of hazardous goods (ADR), a rapidly growing market segment due to stricter laws and regulations.
‘This is a very attractive investment which will deliver secure and sustainable income for our clients,’, says Emile Poort, Head of Transactions Benelux at PATRIZIA. ‘These properties are positioned in top logistics locations with direct access to Europe’s largest port’.
‘With this acquisition, we have built a portfolio of 18 properties for the Fund within just seven months,’, says Nicolai Soltau, Fund Manager at PATRIZIA. ‘A demonstration of our deep access to the market, and the speed at which we are able to execute transactions given the strength of our enlarged logistics team following the integration of recent corporate acquisitions’.
For professional clients only. Subscriptions for a fund can only be made on the basis of the respective issue document in its current version.