Augsburg, 16 August 2022. PATRIZIA, a leading partner for global real assets, has revealed the results of its second annual client survey, which consulted over 100 institutional investors across Europe via its digital investor portal myPATRIZIA.[1]
According to the survey there is a strong intention among a clear majority of PATRIZIA’s institutional investors to grow their exposure to infrastructure. Sixty-four per cent of investors expect to increase the proportion of infrastructure relative to other asset classes over the next five years, of which 20% are planning an increase of more than 10%.
Graham Matthews, CEO Infrastructure at PATRIZIA SE, commented: “We strongly believe this decade belongs to infrastructure: demand for investments in this sector is greater than ever, driven by the rapid pace of change we are seeing around the world. Governments alone cannot keep up with the global megatrends of urbanisation, demographics, digital connectivity, social inclusion, climate change and decarbonisation. Investment from private enterprises is essential if we are to master these challenges and build a smarter infrastructure for thriving and liveable cities, delivering on the need to create sustainable economies for generations to come.”
Additional survey findings on infrastructure investments include:
- Within infrastructure, renewable energies were the most popular asset class. Nearly 80% of investors are looking to increase the weighting of renewable energies in their portfolio, 20% of whom stated that they wished to increase the weighting by more than 10%.
- Utilities, transportation and social care also see strong interest, as around 60% of investors are planning to increase or significantly increase the weightings of these asset classes over the next five years.
- To expand their exposure, institutional investors prefer to invest in infrastructure equity via funds (48%) or direct investments (33%) while they seem to be less familiar with alternative investment options such as funds for listed infrastructure (10%) or funds-of-funds (6%).
- Portfolio diversification (87%) is seen as key benefit for investments in infrastructure, followed by its attractive risk-return profile (57%), its stable, regular returns (49%),
- the inflation hedge it provides (34%) and the illiquidity premium offered by infrastructure (30%).
The growing appetite for infrastructure among investors is not at the expense of real estate investments. Sixty percent of those surveyed say they intend to increase the real estate share in their investment portfolios over the next five years, 14% of whom are planning a significant increase. The demand for real assets that support the smartening up of cities, including renewable energy, transportation, logistics and residential, appears to be particularly strong.
“While the growth in real estate continues, PATRIZIA is perfectly positioned to leverage the growing synergies between real estate and infrastructure which is key to smartening up the cities and buildings of tomorrow in order to build attractive communities and sustainable futures. We know that without solid infrastructure, communities cannot thrive”, said Graham Matthews.
myPATRIZIA – a growing portal for PATRIZIA investors
Around 80% of the survey participants use the myPATRIZIA investor portal at least once per month.
PATRIZIA launched the portal aimed at its institutional clients in June 2020 as part of its digitalisation strategyand is gradually transferring all its fund data, reporting, and clients to the portal. Today, already more than 2,000 individuals from PATRIZIA’s institutional clients and more than 5,000 semi-professional and retail clients are connected to the portal.
PATRIZIA: A leading partner for global real assets
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 38 years. PATRIZIA manages more than EUR 55 billion in assets and employs over 1,000 professionals at 28 locations worldwide. Through its PATRIZIA Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped around 250,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 23 years. You can find further information at www.patrizia.ag
Contact:
Christoph Liedtke
Corporate Communications
Phone: +49 821 50910 628
communications(at)patrizia.ag
[1] The 2nd PATRIZIA client survey was conducted via PATRIZIA’s investor platform myPATRIZIA between March 31 and April 19 with 107 respondents.
