PATRIZIA completes EUR 250m second close of TransEuropean VII
TEP VII is the seventh fund in the highly successful TransEuropean series.
- One third of the committed equity is from clients new to the series
- TEP VII is now 50% raised; a further EUR 200m is in due diligence
- First five investments either contracted or under exclusivity
Augsburg/London, 13 February 2019. PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, announces the EUR 250 million second close of its seventh TransEuropean fund, TEP VII. The equity has been secured from a diverse group of institutional clients in the UK, the USA, Asia and Finland, with over 30% of commitments coming from clients who are new to the TransEuropean series. A further EUR 200 million in equity is presently in due diligence with the fund targeting EUR 500 million, ultimately providing EUR 1.2 billion of firepower with leverage.
In line with its predecessors, TEP VII will pursue a cash-flow driven, value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK. It favours an ‘operator style’ approach, which draws on PATRIZIA’s local transaction and asset management expertise. Since the launch of TEP VII and its first close of EUR 100 million in April 2018, five investments across Madrid, Paris, Barcelona and Berlin, totalling an estimated EUR 200 million, have been either contracted or placed under exclusivity.
Paul Hampton, PATRIZIA’s Head of International Fund Management and Director of the TransEuropean series, said: “To have secured 50% of the TEP VII’s target equity at this point, while also welcoming two new clients to the programme, is extremely pleasing, particularly against the backdrop of a competitive marketplace where institutional investors have choice. We now have good visibility on the shape of the Fund’s initial portfolio and clear appetite from additional investors, and are confident of achieving our final close within the planned timeframe.
“In executing the Fund’s first few investments, we have followed several carefully selected themes across a number of dynamic European markets which we have been operating in for many years. The political picture across Europe, however, continues to evolve and therefore we will not be rushing our equity deployment.”
Since its inception in 1992, the TransEuropean series has invested EUR 2.8 billion in 12 European countries, generating just under a 13% pa gross IRR.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages around EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
Head of Corporate Communications
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