PATRIZIA launches eleventh private investor fund
PATRIZIA GrundInvest introduces its first private investor fund for Berlin.
- Targeting average pre-tax pay-out of 4 per cent per year
- Invested in a fully let, mixed-use building complex in the popular Prenzlauer Berg district
- Asset comprises a diverse mix of leisure, retail, office and healthcare space
- PATRIZIA GrundInvest Frankfurt Smart Living 80 per cent placed following strong demand
Augsburg, 18 October 2018. PATRIZIA Immobilien AG, the global partner for pan-European real estate investments, continues to expand its range of real estate private investor funds in line with its strategy. Its subsidiary, PATRIZIA GrundInvest, is launching its eleventh private investor fund, PATRIZIA GrundInvest Berlin Landsberger Allee (the “fund”), enabling private and semi-professional investors to access the Berlin real estate market for the first time. The new fund allows investors to invest in a mixed-use, fully let building complex in an attractive location in Berlin.
"Given the persistently low interest rates, real estate assets offer attractive yields of around four percent and adequate inflation protection, especially for long-term investment horizons. The high demand from the private investor community demonstrates how important these attributes are to private and semi-professional investors right now," explains Andreas Heibrock, Managing Director of PATRIZIA GrundInvest, who adds: "The newly launched 'PATRIZIA GrundInvest Berlin Landsberger Allee' nd enables investors to invest in a property in the dynamic Berlin real estate market that offers attractive returns with an appropriate risk-reward-ratio, as the asset is fully let and has a diversified mix of uses."
Average annual pay-out of four percent planned
The ensemble of buildings with a rentable area of around 35,000 square metres across ten storeys and one underground level, comprises a hotel, hostel, retail units, office space and a health centre, as well as car parking spaces. The asset is situated in a convenient location with good road connections in Berlin's attractive Prenzlauer Berg district. The complex, which was modernised in 2015 and 2017, is fully rented. The weighted residual term of the rental and lease agreements is just under ten years. Based on the rental income, annual pay-outs before taxes are expected to be around four per cent. The subscription fee for the fund is five per cent, with a minimum subscription amount of EUR 10,000.
"Berlin benefits from a growing start-up scene and is one of the most popular tourist destinations in Europe," says Joachim Fritz, Managing Director of PATRIZIA GrundInvest. "A low and still declining vacancy rate, as well as limited new office space have caused office rents to increase in recent years. This is expected to support the long-term performance of high quality properties in good locations in Berlin." Berlin's gross domestic product and population have grown in recent years. The population increased by around 9.9 per cent between 2005 and 2016, while the gross domestic product grew by an average of 2.1 per cent over the past decade, which puts it above the national average. With 31 million overnight stays per year and noted trade fairs such as the IFA, the international consumer electronics trade show, the German capital has, among other things, a strong tourism industry, which was reflected in a room occupancy rate of 77 percent for Berlin‘s hotels and hostels in 2017.
PATRIZIA GrundInvest Frankfurt Smart Living already 80 per cent placed
The PATRIZIA GrundInvest Frankfurt Smart Living fund, launched in July, is already about to be closed due to strong investor demand. The fund enables investors to invest in micro-living concepts in an attractive Frankfurt am Main location. More than 80 per cent of the fund has already been placed. In total, PATRIZIA's eleven private investor funds have already realised an investment volume of nearly 780 million euros. "Our pipeline is well stocked," declares Fritz. "We can keep expanding our range with compelling real estate concepts to meet the great demand from private and semi-professional investors for our private investor funds.”
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 30 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 almost 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.
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