Two years running PATRIZIA wins key MSCI award for PanEuropean fund
Accolade given by leading authority for real estate fund performance
- Top-performing balanced fund in the MSCI PEPFI index, based on three-year NAV-level returns
- Open-ended 46-year-old fund still outperforming all of its competitors
- PATRIZIA fund management team pays tribute to investors, many of whom long-term
Augsburg/London, 1 October 2019. For a second, consecutive year PATRIZIA, the global partner for pan-European real estate investment, has won the MSCI award for ‘Best Performing Balanced Fund in the PEPFI Index’ for The PanEuropean Property Limited Partnership (‘PanEuropean’), which has again achieved the highest three-year NAV-level performance versus its peers. Launched in 1973, the fund targets net returns of 6%, but continues to significantly outperform by delivering a three-year annualised return net to institutional investors of 11.2% (as at 30 June 2019).
The open-ended fund has been active for 46 years across multiple market cycles, countries and sectors, and is run by an experienced fund management team who have worked together for over 13 years.
Flavio Casero, PanEuropean Fund Director at PATRIZIA, said: “It is a great honour for the whole PanEuropean fund team to receive this accolade from MSCI for two years in a row. Let me take this opportunity to thank all our institutional investors, some of whom have been backing us over five decades. Without their trust and support, our fund would never have evolved into the best-in-class product it is today. Whilst recognition from our industry is very welcome, delivering strong returns to our investors consistently is what makes all our efforts truly worthwhile.”
Explaining the factors behind the fund’s strong performance, Casero added: “PanEuropean’s successes lie in acquiring and managing commercial office, logistics and retail real estate located in major cities and large conurbations across Western Europe and Scandinavia, and its dynamic core strategy is characterised by a strong dividend alongside capital growth via low-risk asset management and timely sales.”
Recent examples include the doubling of the average unexpired lease term from 4 years to 8 years at a prime office tower in Amsterdam’s CBD as a result of multiple successful asset management initiatives, driving a valuation that now stands at 30% above the November 2017 acquisition price. Elsewhere, the fund’s German portfolio continues to perform particularly strongly, with the sale of a 5-asset €100m+ retail park portfolio at the end of 2018 at 20% above the prevailing valuation, while the Coca-Cola office tower in Berlin continues to produce robust, long-term income.
PATRIZIA is currently conducting a round of fundraising to bring the size of the PanEuropean fund to over €1bn by the end of the year.
PATRIZIA 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 more than EUR 41 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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