TransEuropean flagship fund oversubscribed with EUR 1.8 billion total firepower
- PATRIZIA’s TEP VII achieves equity hard cap with EUR 750 million equity from global investors
- Fund pursuing cash-flow driven, value-add strategy across all sectors
- Highly successful series of seven TransEuropean funds launched since 1992
Augsburg/London 06.07.2020. PATRIZIA, a leading partner for global real assets, announces the final close of its flagship discretionary value add fund, TransEuropean VII LP (“TEP VII” or “the Fund”), which has reached its equity hard cap of EUR 750 million. In the latest round of fundraising, which was oversubscribed, a further EUR 116 million of new equity commitments were secured, following the previous close announced at the end of January 2020.
Backed by both existing and new institutional investors from the UK, Europe, the US, the Middle East and Asia, the Fund is the largest in the PATRIZIA TransEuropean series, surpassing TransEuropean Property LP VI (“TEP VI”) which raised EUR 430 million of equity.
TEP VII will pursue a cash-flow driven, value-add strategy across the office, logistics, residential and retail sectors in both Europe and the UK, benefiting from PATRIZIA’s operating platform approach. Having already committed to a number of investments, primarily in the logistics sector, in markets such as Madrid, Barcelona, Milan and Avignon, the programme has in excess of EUR 1 billion of ‘dry powder’ to deploy over the next three years.
Paul Hampton, Fund Chairman of the TEP series at PATRIZIA, said: "That this fund was over-subscribed with a significant amount of capital committed during the COVID-19 pandemic, is clearly very pleasing and we would like to take this opportunity to thank all of our investors for their support over the past months. I have no doubt that our long term track record in and continued focus on generating performance from cashflow enhancement has contributed towards this success. Clearly our primary aim is now to deploy this equity strategically – and to that end, we feel optimistic that current market conditions should play to our strengths as one of Europe’s largest real estate operating platforms, with experienced deal originators and asset managers employed in each of our pan-European target markets.”
The TEP series of funds was first launched in 1992 and has invested over EUR 2.8 billion in 13 European countries. Since 2008, the current fund team has generated a 24.8% IRR pa*. TEP VI is now in its liquidation phase and on track to exceed its return targets with c. 30% of assets sold, including the off-market disposal in October 2019 of a portfolio of French logistics assets which released a 2.7x net equity multiple back to the fund.
*Realised property / investment level returns quoted after leverage and capital gain tax but before fees, corporate costs and income tax
As a company with operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 36 years. PATRIZIA manages more than EUR 45 billion in assets and employs over 800 professionals at 24 locations worldwide. Through its PATRIZIA Children Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped over 220,000 children in need worldwide over the last 20 years. You can find further information at www.patrizia.ag.
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