Since it was founded in 1984, PATRIZIA has succeeded in evolving into a leading pan-European real estate investment manager. With assets under management of over €47 billion, we are considered one of the top addresses in Europe for real assets. The market will remain dynamic in the future and it is clear from current property trends that if anything, the requirements of our customers will become increasingly challenging.
- We say this because we are observing a continual upward trend in their investment volumes. At the same time, their portfolio allocations are rising, as are the number of investments that are reinvested.
- The bigger and more global investors become, the more they seek to diversify their investments and minimise risk.
- For investors, diversification is not just about channelling equity into real estate, it is more about investing in real assets.
Given these developments, further market consolidation can be expected:
- The major institutional investors increasingly want to work with strong business partners in partnerships of equals, also looking for a broad investment spectrum spanning different types of asset classes. The result of this is that the bigger asset managers will grow more quickly than the overall market.
- Digital solutions and innovation are bringing about sweeping changes in the property industry and driving new business models.
- Introducing the very latest technology is crucial if you want to remain relevant as a partner of institutional customers, develop new solutions for investors and thus add even more value.
As part of our strategy for 2023, we are playing to emerging trends with the aim of developing PATRIZIA into the leading partner for global real assets. This strategy is based on four key thrusts:
We create new investment opportunities for investors, offering attractive return profiles by expanding our product range to span more sectors, regions and risk profiles. In addition to our previous focus on real estate, we will offer new products with a focus on real assets. This applies to all groups of investors, from institutional investors inside and outside Germany to private and (semi-)professional investors from Germany.
We want to make things easier for everyone, in order to play to our core strengths. New technology will help us to simplify structures, automate complex processes, analyse information more quickly and spot market trends even earlier. We base our processes of information-sharing on a principle we call ‘single source of truth’. This gives us straightforward and consistent access to all required information. Our state-of-the-art services allow us to make it easier for our partners to work with us.
We create value by delivering world-class service – for our investors, but also for our employees. To foster the best possible service mentality, we will continue to focus on the technologies that empower us to provide best-in-class services. This is also why we are establishing a modern service platform equipped with smart data solutions, real-time reporting mechanisms and direct access to information on the performance of assets invested in by our customers.
By enabling simplification, services and scope to build on and complement each other, we enhance stability. We have emerged from every challenge or crisis over the last 30 years as a stable and reliable partner to our customers. As in the past, we plan to continue achieving organic growth in our assets under management (AuM) of between 8 and 10% per year by 2023 – or €60 billion AuM. We will also expand inorganically through company acquisitions. By growing our AuM volumes, we will continue to improve our revenues and aim to raise the share of stable, recurring income.