PATRIZIA initiates sale of two additional private investor funds
The business of investing in real estate with funds from private investors continues to grow at PATRIZIA Immobilien AG.
The first real estate fund for private investors was fully placed after just four months, and the second was made available in May. PATRIZIA is now following up with the two funds “PATRIZIA GrundInvest Kopenhagen Südhafen” and “PATRIZIA GrundInvest Den Haag Wohnen”. “The two funds constitute the starting point for the series “Wohnen Europa,” with which we offer private investors an opportunity to benefit from the growth of European metropolitan areas,” explains Andreas Heibrock, the Managing Director of PATRIZIA GrundInvest. “The goal is to collect equity in the total amount of EUR 50 million from private investors,” Heibrock goes on. The minimum investment amount is just EUR 10,000.
The new fund series, which is to include additional funds as well, is PATRIZIA’s response to the urbanisation megatrend. More and more people move to European metropolitan areas to work and live there, and to enjoy the cultural diversity. The metropolitan areas therefore stand for a highly concentrated growth in terms of population and economic power. These positive factors, coupled with high income levels, have made metropolitan areas attractive for employees and self-employed individuals alike. Consequently, residential living space will be in demand in these growth centers in the future as well. “The constantly increasing number of residents and the positive economic framework conditions offer private investors attractive investment opportunities in The Hague and Copenhagen,” Heibrock comments.
A portfolio with 84 residential units was purchased for the private investor fund “PATRIZIA GrundInvest Den Haag Wohnen”. The residential units were built in 2005, have a living area ranging from 94 to 150 square metres, and offer excellent transport connections. Annual yields of an average of 5.0% before taxes, are projected.
The investment fund “PATRIZIA Kopenhagen Südhafen“ invests in a new group of buildings directly by the water with 127 residential units. These range in size from 60 to 148 square metres. The investment property will be completed by the end of the year and is located on the Teglholmen peninsula in the former port area south of Copenhagen, only around two kilometres from the city centre. The projections for these funds suggest average annual yields of 4.0% before taxes.
The investment properties in The Hague and Copenhagen will be managed by the local subsidiaries of PATRIZIA in Amsterdam and Copenhagen, respectively. “By participating in our fund, private investors can now also benefit from the real estate expertise of the entire PATRIZIA Group“, Heibrock states. “It is now not only possible to invest in residential properties throughout Europe with smaller amounts, but this fund also makes it possible to optimally diversify risk by making various investments and, at the same time, to generate attractive annual payouts.”