Markets need confidence
Real estate investors pursue individual strategies and demand tailor-made fund products. PATRIZIA creates the basis for sound investment decisions and thereby operates actively with a long-term orientation.
With more than 30 years of experience in institutional real estate investments, PATRIZIA is one of the first addresses among real estate asset and investment managers in Europe. We operate across Europe with funds in the area of direct and indirect investments in residential and commercial real estate, as well as operator-run properties. Our products include pool funds, individual funds, mutual funds, label funds, and co-investments. In addition, we can guarantee our customers outstanding expertise in the dual function as investor and real estate service provider.
Size through professionalism
Since the entry into force of the AIFM (Alternative Investment Fund Managers Directive), the real estate fund market is also subject to strict regulation. PATRIZIA fulfils all requirements and has several AIFM licenses, including three for Germany, one for Luxembourg, and one for Denmark. Others are in preparation.
First-hand market monitoring and real estate expertise
The team of experts from PATRIZIA keep their eyes on the specific characteristics of all European countries. We make our selection of properties based on deep market knowledge and after thorough consideration of all of the opportunities and risks. In addition, as a real estate service provider, we cover research on business development and acquisition of suitable properties through financing at the fund level, as well as portfolio management, asset and risk management, including comprehensive reporting tools.
This comprehensive real estate expertise enables our customers to benefit from every fund product.
Range of services:
- Real Estate Research
- Portfolio Management
- Asset Management
- Risk Management
- Extensive Reporting
Our real estate special funds:
- PATRIZIA German Residential Fund I
- PATRIZIA German Residential Fund II
- PATRIZIA Euro City Residential Fund I
- PATRIZIA Office-Invest Europe I
- PATRIZIA Retail-Invest Germany I
- PATRIZIA Retail-Invest Europe I
- PATRIZIA Hotel-Invest Germany I
- PATRIZIA Care-Invest Germany I
- PATRIZIA Home-Invest Germany I
Residential real estate
Focus on conurbations
With 500 million people, the single market of the European Union is the world’s largest purchasing power. Whoever truly analyses market development and carefully selects location, asset class, size of the object, and type of use opens themselves up to promising potential. The housing sector in European countries shows very different tendencies. However, there are fundamental similarities: people’s living space requirements are becoming more diverse, thus new, flexible housing forms are becoming more important. Furthermore, in connection with demographic change, the demand for age-appropriate, barrier-free living space is increasing.
Dynamics in country and city rankings
While regulations are being withdrawn in many markets, Germany is an exception with rent control, which has been effective since 2015. Although the purchase prices for residential properties have risen by 25 per cent in the last ten years, this increase is mostly also reflected by real demand. Munich, Berlin, London, and Hamburg are generally among Europe’s top five property locations – but Paris, Copenhagen, and Stockholm as well as smaller university cities such as Dublin, Amsterdam, and Manchester also offer attractive yield opportunities. In addition, low housing prices in the Netherlands, Ireland, and Spain – as well as the changing political framework conditions on the rental markets in these countries – mean good investment opportunities.
PATRIZIA is present in all major European residential markets and tries to seize opportunities with its local expertise and exploit the potentials listed above.
Commercial real estate
Focus on Long-term, predictable yields
Commercial real estate is considered a profitable and comparatively low-risk investment. The interest of investors is increasingly shifting to Core Plus and Value Add objects, and macroeconomic factors play an important role here.
Whether office, retail, or other commercial property, if you want to make the right investment decision in a dynamic market environment, you have to ask the right questions. Which locations, types of use, and object sizes will profit the most in which European countries? The respective economic conditions are indispensable parameters for the opportunity and risk assessment of commercial space.
Focus on growing segments
Where supply is limited and prices are rising, effective asset management becomes increasingly important. Retail example: Double-digit growth rates in E-commerce and changing customer needs require new usage concepts. While specialist stores and supermarkets are booming at locations that are conveniently located, the top locations in the inner city will also be in demand, because of pedestrian traffic for the showrooms of national and international brands. But nothing is more stable than change. Here, trends must be identified at an early stage and taken into account in the buying, selling, and asset management strategies. An unalterable factor is always in focus here: the location of the real estate!
The PATRIZIA team of experts conduct intensive monitoring in all segments of commercial real estate. This is reflected in our building block fund concept, in which we describe different types of use:
- PATRIZIA Commercial Real Estate Germany II
- PATRIZIA Office Europe I
- PATRIZIA Retail Europe I
Would you like to know more about the strategic direction? We would be happy to show you which fund fits your investment objectives. Talk to our experts!
Hotel and care home real estate
Prime addresses with growth potential
With operator-run real estate, such as hotels and care homes, the fund and investors also have to match. Once again, the key to successful investment lies in the strategy.
Whether luxury hotels in European conurbations, wellness resorts in the countryside, or care homes on the outskirts of the city – the expected capacity utilisation and the price are important evaluation criteria. The PATRIZIA Real Estate Special Funds focused on future-oriented hotel concepts and care homes, which can expect constantly high demand due to the micro-environment and demographic development.
Hotel market Germany – the era as investment nice is over
Hotels represent a sensible addition to a real estate portfolio, because they have significantly lower volatility compared with other segments and thus contribute to securing stable earnings. The low correlation between the classic core real estate sectors – office and retail – is also beneficial, and is simultaneously linked to an outperformance of both sectors in the average total return for the past ten years. These positive characteristics of hotel investments led to the fact that despite the difficult economic years 2008 and 2009 – after the outbreak of the financial crisis – a negative total return at European level was not recorded. The era in which hotel real estate could be viewed as investment niche is now a thing of the past.
Assets with a lot of potential – as a useful supplement
As a comparatively young, meanwhile well-established asset class, care homes are ideally suited to diversify with other assets that are subject to greater fluctuations. The number of people in need of care is expected to increase by more than half by 2030. Already today around 2.5 million people in Germany are reliant on care services, only about 30 per cent of them live in care homes. Thus, there is a lack of residences suitable for senior citizens nationwide.
PATRIZIA invests in selected operator-run properties on the basis of comprehensive strength-weakness profiles. The largest funds in the portfolio currently include:
- PATRIZIA Hotel-Invest Germany
- PATRIZIA Care-Invest Germany