A platform of industry specialists
Since 19 September, the entire group of PATRIZIA companies has operated under a common brand. But this is about more than using a uniform name or logo. It’s about a desire and aim of merging the strengths of four companies and operating as ONE new PATRIZIA. Now more than ever, PATRIZIA is a global partner for pan-European real estate investment.
Bigger – and more diversified. This is a road investors are now treading worldwide in order to optimise the structure of their real estate portfolios. Investment volumes in the property sector have been on the rise for years, not just in absolute terms but also in terms of their proportion of overall portfolios. As investments have risen, so has the need to diversify investments across different sectors of industry, regional markets or risk categories. It makes everything easier to manage and more efficient if everything is kept under the one roof. “No matter how important it is to have a wide spectrum of products and cover lots of markets, there’s only real value-added for investors if they can access investments quickly and there are no ‘frictional losses’,” says Wolfgang Egger, CEO of PATRIZIA. “You shouldn’t look at things individually, they have to be coordinated to work out the optimal solution.”
This respect for customer requirements reflects a guiding principle – the path ahead that PATRIZIA is now treading to develop as a company and extend its offering. After the acquisitions of Sparinvest Property Investor (SPI), TRIUVA and Rockspring at the end of 2017, all three companies were merged with the ‘old PATRIZIA’ to become ONE joint company under a strong joint brand: PATRIZIA. The new PATRIZIA pools the strengths of each individual predecessor, so it now stands even more for combined real estate expertise and local networks, underpinned by the resources and the overarching vantage point of one of the biggest investment managers for European property.
Establishing and cementing this concept in the individual investment markets is the task of the local units at the 23 PATRIZIA offices. PATRIZIA now has teams in all European core investment markets, spanning all key market segments – with products ranging from offices to retailing, residential and even more specialist market segments like hotels and logistical properties.
At the same time, PATRIZIA is in a position to address a broad variety of investment preferences, from core plus to value add and opportunistic. Investors look for investments that are as individual as their aims and objectives, and PATRIZIA has the flexibility to offer investment structures and vehicles to match, whatever the investor requirement. Alternative investment funds (AIFs) adhering to German or international law, fund of funds arrangements, unregulated investments or individual funds – PATRIZIA offers a number of ways to weave required investments into the respective customer structure. For private investors, having access to public close-end funds through PATRIZIA GrundInvest is also an opportunity to invest smaller amounts of equity and participate in developments in the European property market.
A diversity of skills and know-how – one key contact
For customers, real value comes from having access to local know-how and being able to tap into a broad spectrum of specialist expertise offered by a pan-European setup and different ways of looking at things. To ensure customers have simple and efficient access to all of the different investment options offered by PATRIZIA, certain functions such as fund management, product development and transactions have been pulled together into European teams. This also means clients have access to a central customer contact. The teams now operate on a pan-European basis with local support and specialist input on all levels. This is independent of where the individual members of a team are actually based. The result: agile and adaptable investment teams, rather than rigid departmental structures or local organisations.
“This partnership approach ensures that clients really can bank on access to the expertise of the entire company – so that’s more than 900 property and investment experts, with a track record spanning more than three decades,” highlights Egger. “This makes our unique market coverage really useful to clients, because it offers breadth and depth.”
The solutions PATRIZIA offers revolve around its pan-European outlook, making it easier for German and major global investors to diversify their portfolios. It’s also now easier for investors to build on the outstanding market knowledge offered by PATRIZIA, a function of the deep-rooted local teams within individual markets. This is just as important to small and medium-sized pension funds and occupational funds as it is to international investors with big sums of money to invest. Overhauling and updating its organisation allows PATRIZIA to process both small and extremely large deal tickets. An important foundation for the future of PATRIZIA – especially given the current market environment – lies in the €40 billion of assets under management held by the company, making it a preferred partner in the market for entering into deals.
Long-term investors typically want to work with a reliable and strong partner. A family-run business like PATRIZIA, which is independent, delivers the best customer service and thinks in terms of generations. As a listed company managed by its original founder and majority shareholder, PATRIZIA offers a combination of high standards – especially regarding transparency, business administration and a strict regard for customer interests.
In a nutshell, ONE PATRIZIA offers many different areas of know-how and a variety of strengths under one roof, granting investors instant access to a ONE-stop shop for European real estate investments. “Our journey to becoming ONE PATRIZIA is the answer to the multiple challenges faced by our investors,” says Egger. “We’re creating ONE team with a common way of thinking and doing things, a team that consistently focuses on the pan-European perspective.”
Since mid-September, this has also been reflected by one brand, conveying a common, uniform image across the whole group. “For us, it’s another important step on our journey, bringing us closer to our goal of becoming a leading global partner for pan-European property investments. And the ONE preferred partner for domestic and international, and similarly for institutional and private investors,” explains Egger.
WOLFGANG EGGER founded the company more than 30 years ago. PATRIZIA Immobilien AG is now an investment manager across the European property market. The PATRIZIA portfolio ranges from the acquisition, management, capital value growth and selling of residential and commercial property to the company’s own licensed investment platforms. A global property investment partner throughout Europe, the company now operates on a pan-European level, not only for major institutional investors but also for private investors. PATRIZIA currently manages property assets worth around €40 billion, the majority of which are managed as a co-investor and investment manager on behalf of insurance companies, retirement plan providers, sovereign wealth funds, savings banks and cooperative banks.