- Hong Kong insurer invests first tranche of USD 50 million committed capital in new PATRIZIA real estate debt product
- High yielding PATRIZIA Global Real Estate Debt mandate expected to deliver annual net returns of over 8% in USD terms
- New debt mandate follows recent acquisition of Whitehelm Capital, which offers infrastructure debt aside from equity and publicly listed infrastructure investments
Augsburg / Copenhagen 3 November 2021. PATRIZIA AG, a leading partner for global real assets, has taken on a new mandate purely focused on real estate debt and is strengthening its position as a leading independent global real assets investment manager.
The PATRIZIA Global Real Estate Debt mandate is now operational and aims to invest the initial USD 50 million of capital in up to four investments across Europe and APAC. It will target annual net returns of over 8% in USD terms. The client is a leading Hong Kong insurer who has committed an initial sum of USD 50 million with an intention to expand the mandate further.
Through its subsidiary, PATRIZIA Global Partners (PGP), the company already has a substantial track record of over a decade in real estate debt investments through local partners and can point to over USD 2 billion indirect exposure in real estate debt investments across Asia, the US and Europe and over 130 loans.
“In a world of low interest rates, long-term investors such as insurers and pension funds are increasingly looking at alternative strategies in private markets to secure higher returns. That is why there is currently a growing appetite for private debt and such investment products,” said Marko Multas, Head of Asia, PGP and fund manager of the new product. “We believe that real estate debt will offer attractive opportunities for new and existing clients. Many traditional lenders like banks have retreated from our target markets, opening up an opportunity for us to provide our clients with access to very attractive yields and diversification. It therefore makes a lot of sense for us to offer real estate debt opportunities for our clients.”
PATRIZIA’s new debt mandate follows its earlier announcement in September that it was acquiring Whitehelm Capital, an independently owned infrastructure investment manager, with a track record in private equity and debt spanning over 23 years. The acquisition, once closed, is set to triple PATRIZIA’s infrastructure AUM to circa EUR 5 billion and PATRIZIA is aiming to grow the segment in the mid-term to EUR 15 to 20bn.
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 48 billion in assets and employs over 800 professionals at 24 locations worldwide. PATRIZIA has been impact investing since 1984. Since its inception and through the 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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