PATRIZIA reaches EUR182m at first close of its Multi Manager Fund V
Global fund of funds offers enhanced returns and significant diversification.
- PMM Fund V will invest through local operating partners across Asia, North America and Europe
Augsburg/Copenhagen, 11 September 2018. PATRIZIA Immobilien AG announces that it has achieved a EUR 182 million first close of its fifth Multi Managers fund, PMM Global V. The fund, which has a target of EUR 700 million, will invest in global real estate through funds, club deals, joint ventures and co-investments via a best-in-class network of local operating partners. The fund has already completed its first investment, a value-add office investment in Hong Kong with an existing Asian partner with a successful track record.
Nikolaj Stampe, Head of Real Estate at the Danish pension provider, PKA, which represents four pension funds invested in PMM Global V, states: “The PATRIZIA Multi Managers team has delivered very strong results in their previous funds and we believe PMM Global V will continue this good performance. Therefore it makes good sense for us to continue our collaboration and outsource our non-domestic property investments to a dedicated team of specialists like PATRIZIA Multi Managers.”
Commenting on the fund’s first close, Mads Rude, Head of PATRIZIA Multi Managers, said: “Following the recent integration into the PATRIZIA platform, it is encouraging to see our existing investors continue to believe in us and support our investment approach. It is important to emphasize that PATRIZIA Multi Managers team, as would be expected by investors, has a full autonomy over the actual investment decisions. The focus for PMM Global V will continue to be on the small- and mid-cap segment, where we believe we can achieve the best risk-adjusted returns.”
The value-add fund series of PATRIZIA Multi Managers have delivered returns of approximately 13% since inception. This has been achieved by carefully selecting winning strategies and the best local operating partners in each target market. At the same time, the portfolios have been well diversified across a large number of properties and using moderate financial leverage with loan-to-value ratios of between 40-50%.
The first close of PMM Global V comes shortly after the finalisation of the investment programme of its predecessor, the PMM Global IV. The fourth global fund recently executed its 19th investment to complete a EUR 500 million equity programme. This fund is already invested in 140 assets and when fully invested its ownership is expected to be across 250 different assets.
Key to the success of PATRIZIA Multi Managers is its strong, existing network of local operating partners and its ability to identify new best-in-class partners through which to invest. Officially part of the PATRIZIA group since October 2017, PMM retains full autonomy over its investment decisions.
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.
Group Head of Corporate Communications
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