PATRIZIA closes debut impact strategy with firepower to invest over EUR 500 million in social and affordable housing

PATRIZIA has announced the final close of its debut impact investing strategy with firepower to create a EUR 500+ million pan-European social and affordable housing portfolio.

 

  • PATRIZIA’s dedicated impact investing strategy, PATRIZIA Sustainable Communities, has already committed a significant share of its capital to social and affordable housing projects in Europe
  • With equity commitments from 10 institutional investors, the strategy has invested in four developments in Ireland and the UK
  • Within this strategy PATRIZIA aims to house more than 7,500 individuals in social and affordable accommodation, develop 100% net zero buildings in operation and invest in over 25 European cities to tackle loneliness
  • The growth of PATRIZIA Sustainable Communities is central to PATRIZIA’s corporate sustainability strategy which has impact investing as one of its core pillars

 

Augsburg, Copenhagen. 29 January 2024. PATRIZIA, a leading partner for global real assets, has announced the final close of its debut impact investing strategy with firepower to create a EUR 500+ million pan-European social and affordable housing portfolio. PATRIZIA Sustainable Communities has secured equity commitments from 10 institutional investors, with Danish pension funds AP Pension and PKA as cornerstone investors.

Launched in January 2022, PATRIZIA Sustainable Communities has already committed a significant share of its capital to affordable housing projects in major metropolitan areas in western Europe. It commenced its investment programme with four major developments, two in Dublin in Ireland, and two in the UK in Milton Keynes and Bishop’s Stortford, which all together will deliver around 1,000 affordable and social homes.

 

Tackling the affordability issue in core residential markets

In Ireland, the strategy has invested in two affordable and social housing developments in established residential neighbourhoods in the outskirts of Dublin. The projects have the potential to house over 1,600 low-to-middle income residents in modern apartments that are EPC A-rated and HPI (Home Performance Index) certified, and equipped with solar panels. The investments will also deliver a new library, community centres, crèches as well as green public spaces. Both schemes have agreements in place with an approved Housing Association to ensure the long-term impact benefits.

In the UK, PATRIZIA Sustainable Communities has launched a programme targeting EUR 115 million to be invested in the development of environmentally and socially sustainable new-build single-family housing for the UK’s affordable housing sector. The first two investments have been made to forward-fund the development of 70 new-build homes on long-term affordable rents in Milton Keynes, which is less than 50 miles north of London, and 80 new-build homes in Bishop’s Stortford, which is less than 25 miles northeast of London. In both projects, PATRIZIA also secured additional social homes to be built for the local Registered Housing provider.

Marleen Bikker-Bekkers, PATRIZIA Sustainable Communities Fund Manager and PATRIZIA Global Partners Head of European Investments, said: “With over EUR 500 million of firepower, we are incredibly excited to make a meaningful difference in tackling housing affordability through our pan-European investment programme. Across the world we are experiencing a transition in the way we live that is driven by changes in demographics, societal needs and economic shifts, placing huge pressure on the cost of living. With over 80 million Europeans now overburdened by housing costs, accelerating the provision of high-quality homes at affordable levels has never been more urgent and cannot be achieved by governments alone. We are happy to work with them and contribute to the solution of this major issue that people face day-to-day.”

Mathieu Elshout, Head of Sustainability and Impact Investing at PATRIZIA, said: “A core pillar of PATRIZIA’s sustainability strategy is to become a leading impact investor in global real assets by 2035. Despite the economic headwinds, the strong demand we have seen from investors for our first-ever impact strategy underlines our clear conviction for making an impact through social and affordable housing, and represents a significant step towards achieving our impact and sustainability goals. As we build-out our affordable housing experience in key residential markets, we look forward to delivering not only much-needed new homes but also providing our investors with attractive dual returns of sustained social and environmental impact alongside good financial returns.”

PATRIZIA Sustainable Communities aims to build a balanced portfolio targeting over two thirds of its assets under management in affordable and social housing, alongside wider investments in alternative living, social infrastructure and community space. It will target value-add investment opportunities with the goal of reducing carbon emissions by at least 40% for repositioning projects and achieving net zero energy buildings in operation for new developments. It will focus on core European residential markets like the UK, Ireland, Benelux, France, Germany, Spain and the Nordics.

As PATRIZIA’s first SFDR Article 9 strategy, PATRIZIA Sustainable Communities is dedicated to making a positive environmental and social impact through its investments. The ambition of the strategy is to house more than 7,500 residents in affordable housing in around 25 European metropolitan areas. The strategy has three impact themes – affordable housing, green real estate, and inclusion and connectivity – and is aligned to eight of the 17 UN Sustainable Development Goals.

 

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 39 years. PATRIZIA manages approx. EUR 58 billion in assets and employs around 1,000 professionals at 28 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis (“colourful circle”) in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation. The PATRIZIA Foundation has given more than 600.000 children and young people worldwide access to education, healthcare, and a safe home to get the chance to live a better self-determined life over the last 24 years. You can find further information at www.patrizia.ag and www.patrizia.foundation.

 

Contact

Ed Whittaker

PATRIZIA                                                             

Corporate Communications

Phone: +44 7881 276427       

communications(at)patrizia.ag

 

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29 January 2024 PATRIZIA Investment Management S.à r.l.