PATRIZIA flagship fund, PanEuropean, reaches EUR 1 billion GAV milestone following acquisition of French logistics portfolio

• PanEuropean, PATRIZIA’s flagship open-ended, core, balanced fund strategy recently acquired a portfolio of three logistics assets in France off-market, fully let to Kuehne & Nagel
• The Fund has raised over EUR 320 million equity throughout the Covid pandemic
• PanEuropean manages a well-diversified, robust portfolio with low-risk profile, with a fund LTV under 25%, 100% occupancy, an 8.8-year WAULT, and fund financing fully hedged for 6.4 years on average
• The Fund’s 5-year annualised return up to 30 September 2022 outperformed the equivalent MSCI PEPFI benchmark by 15%¹
• PanEuropean was recently awarded 5 GRESB Green stars for strong ESG credentials and ranked at the top of its peer group for sustainability

Augsburg / Luxembourg / Dublin, 19 December 2022. PATRIZIA, a leading partner for global real assets, has announced that its PATRIZIA PanEuropean Property Limited Partnership (‘PanEuropean’ or the ‘Fund’) has reached a total gross asset value of c. EUR 1 billion. PanEuropean reached this milestone following the acquisition of three logistics assets in France on behalf of its institutional clients.

PATRIZIA’s flagship, open-ended, core balanced fund recently acquired two warehouses in Lyon and one in Strasbourg from the international logistics group Kuehne & Nagel in an off-market transaction, for an undisclosed sum. The sale-and-leaseback of the 34,000 sq m portfolio, which also includes Kuehne & Nagel’s new French headquarters, is based on a 9-year green lease and complies with the French government’s energy consumption reduction targets.

This latest achievement is fully in line with PATRIZIA’s focus on rapidly growing its flagship investment strategies. The strategy of growing flagship funds to critical mass will continue to drive the growth of PATRIZIA’s recurring income.

Samy Bougandoura, Head of Transactions for PATRIZIA France, said: “Despite the current uncertain economic climate in Europe, we are able to source and invest in highly attractive assets like these by combining PATRIZIA’s proprietary data intelligence tool, the Logistics Impact Solution (LIS), with local expertise across Europe. We expect demand for the best logistics assets, including light urban industrial, cold storage and transportation hubs, to remain sustained on the back of global megatrends such as e-commerce, urbanisation and digitalisation.”

PanEuropean – Continental Europe’s longest running open-ended fund  PanEuropean’s veteran fund management team, which has mastered several economic cycles, is led by Flavio Casero, Fund Director, whose track record with the Fund began in 2004.

“Throughout the pandemic and current market uncertainty, our focus has centered on sustainability, quality of tenants, future proofing the portfolio through a mix of proactive asset-level enhancements, targeted acquisitions and sales, while consistently securing long-term debt at fixed cost. As a result, PanEuropean has been able to raise over EUR 320 million since 2020 and continues to attract interest from long-term institutional capital with no outstanding redemptions. On behalf of the entire PATRIZIA team, we would like to thank our investors for their continued support,” said Flavio.

PanEuropean’s stable and resilient performance is underpinned by a strong emphasis on risk management and a highly selective investment approach focused on best-in-class logistics, living and alternatives assets. With a fully let portfolio comprising logistics assets (44%), office (22%), living (25%) and retail (9%), a weighted average unexpired lease term (WAULT) of 8.8 years and a reversionary potential of 11%, investors have benefitted from a strong 5-year annualised return that has outperformed by 15% the equivalent MSCI PEPFI benchmark of 5.7% in the same period¹.

PanEuropean was also recently awarded a 5-star GRESB score, reflecting the Fund’s outstanding ESG credentials, including its Net Zero Carbon strategy. The Fund ranked first amongst its GRESB peer group for sustainability performance.

Over the last 12 months, the Fund has invested over EUR 330 million, which included a student accommodation portfolio in Barcelona while securing material profits through the timely disposal of office, retail and logistics assets totalling EUR 181 million.

PanEuropean’s core strategy specialises in the acquisition and management of mainly real estate located in major cities and large conurbations in Western Europe and Scandinavia. The Fund’s lower risk core income and growth investment style is characterised by a running yield enhanced by capital appreciation through low-risk asset management initiatives, re-positioning, and timely sales.

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 57 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

¹ Past performance is not indicative of future performance.

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