- TransEuropean VI portfolio now ca.30% realised delivering 3.4x multiple to date
- Latest disposals comprise two Berlin offices repositioned under value add strategy
- Strategy on track to exceed targets, with more than 50% of follow on fund TransEuropean VII already committed
Augsburg / London, 6 April 2021.PATRIZIA AG, a leading partner for global real assets, has sold two office properties in Berlin to Real I.S. AG on behalf of TransEuropean VI LP (“TEP VI” or “the Fund”). Following these disposals, just under 30% of the TEP VI portfolio has now been realised, taking the Fund’s combined realised IRR to 48% per annum and delivering an equity multiple of 3.4x to date.
The latest TEP VI disposals comprise an 8,600 sq m property on Warschauer Straße, in Friedrichshain, and an 9,500 sq m asset on Chausseestraße, the northern extension of the well-known prime office and retail address, Friedrichstraße. Following the completion of active asset management plans, including the full refurbishment, the extension of the Friedrichshain property and highly successful lettings campaigns, the offices are now the German headquarters of Nike and Swedish bank, Klarna respectively.
The sales mean TEP VI is on track to exceed its target returns, following the previous disposal of a French logistics portfolio to a major financial institution. PATRIZIA closed the latest fund in the series, TransEuropean VII (“TEP VII”), in July 2020 with an investment firepower of approximately EUR 1.9 billion, of which over EUR 1.0 billion has already been committed. As with its predecessors, TEP VII is focused on 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.
Paul Hampton, PATRIZIA’s Head of International Fund Management and Director of the TransEuropean series, commented: “We are very pleased with the progress we have achieved so far with both the TEP VI disposals programme and the speed with which we’ve been able to deploy proceeds for its follow on fund, TEP VII. The vertically integrated and highly collaborative platform we have at PATRIZIA provides us with a real advantage, enabling us to highly effectively source, assemble and asset manage value accretive portfolios. Most of our acquisitions for TEP VI were conducted off market and, as evidenced by our progress with TEP VII, we continue to identify and secure significant value add opportunities, even in the most competitive European marketplaces.”
The TEP series of funds was first launched in 1992 and has invested over EUR 2.8 billion in 13 European countries. Since 2009, the current fund team has generated a 24.1% IRR pa*.
* Realised property / investment level returns quoted after leverage and capital gain tax but before fees, corporate costs and income tax
PATRIZIA: A leading partner for global real assets
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 37 years. PATRIZIA manages more than EUR 47 billion in assets and employs over 800 professionals at 24 locations worldwide. Through its PATRIZIA Foundation, the company is committed to social responsibility. The Foundation has helped over 230,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 21 years. You can find further information at www.patrizia.ag
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