At PATRIZIA, we have always believed in balancing the expectation for returns with the need for stability – and with 36 years of experience, rock solid financials, and long-term orientated investment strategies in resilient asset classes, we are expertly positioned to protect our clients and their investments.
Our more than 800 professionals across 24 offices, make informed decisions based on their comprehensive local knowledge and maintain close communication with our clients, supporting them at all times in the best possible way. While the current situation remains uncertain – we have planned for the unexpected. We are proud that our clients trust us to give them access to the most accurate and balanced in-depth research possible, helping them to make the right decisions in these challenging times.
Read our thought leadership papers for greater insight into how our experts are taking balanced and informed decisions to manage the investments of our clients successfully for the long run.
In times of uncertainty, what our clients really value most is having a strong and reliable partner by their side to help them navigate through unchartered waters. The current Covid-19 pandemic is proving that stability and reliability are key.
PATRIZIA, as a truly independent investment manager, has successfully weathered several crises over the last 30 years.Each time our company has emerged stronger than ever. Today we have over 800 professionals on the ground in 24 locations worldwide to support our clients in the best possible way.
Our proven track record of 36 years demonstrates that we are a reliable partner: for example, the majority of our 400 institutional clients invest with us for decades and multiple times. Nobody knows better than our PATRIZIA experts on the frontline how to master the daily challenges of this crisis and find constructive solutions with all our stakeholders.
By Edmund Craston, Head of Fund Management, PATRIZIA
During major economic and market crises fund managers often find themselves at the centre of the storm. At PATRIZIA, Fund Management is the central hub which has to understand and manage the fast-changing impact on our portfolios and vehicles and at the same time ensure we communicate with and protect the interests of our investors. In this we are closely supported by our operational colleagues in Asset Management and Transactions - and by other key functions like Corporate Finance, Capital Markets, Client Services and Research.
In my over 30 years’ experience in the real estate and financial markets, I have seen and weathered several of these storms: most recently before Covid-19 we had the Eurozone crisis which peaked between 2010 and 2012 and the Global Financial Crisis of 2008/9. This one is very different from others as it is having a more profound impact on day to day life and a more rapid and widespread impact on the ‘real’ economy.
The situation may be extreme but the way we respond is the same: Fund Management at PATRIZIA works closely with all our stakeholders to help them manage through the crisis, and thereby remains a stable and reliable partner at their side.
Thoughtfulness, diligence and professionalism are essential, complemented by frequent and close communications with our clients. As their partner of choice, we are fully transparent and inform them regularly of the evolving situation so they are not taken by surprise and can really trust us to do the best possible job.
Good Fund Management: not a sprint but a marathon
With that in mind, very early on in this crisis, our Fund Management team conducted detailed stress tests on our portfolios. In this exercise we consider scenarios for reduced income and valuations and assess what that means for our funds and their ability to meet their outgoings and objectives.
We are confident our funds are robust as the vast majority of our assets are not in the most exposed sectors like hospitality and non-food retail. Many are in relatively secure areas like residential and logistics. And our funds are not highly leveraged in terms of debt which makes them more resilient.
This is no coincidence. Our long-term oriented strategic investment decisions are now being vindicated when robust funds are more important than ever. Good fund management is not a sprint but a marathon. Our experienced team members at PATRIZIA all share a common quality: they take a balanced view and make informed decisions in a calm and consistent manner even in difficult situations. That is how we have earned our reputation over time as a stable and reliable partner for our clients.
Providing stability for clients in uncertain times.
By Rikke Lykke, Head of European Asset management PATRIZIA
As someone once said:
It takes 20 years to build a reputation and five minutes to ruin it.
At PATRIZIA, we are proud to be a trusted and reliable partner for hundreds of institutional clients and thousands of private investors on the one side and thousands of occupiers on the other. Reputation and trust are vital for us.
Knowing how precious reputation and trust are, regardless of whether we are in a crisis and the situation in the market, we always work in same client-focused, professional and diligent manner.
What makes the Covid-19 crisis different for Fund and Asset Management, we face the challenge and responsibility of finely balancing the interests of our two main stakeholders – occupiers, our tenants and our clients, the investors.
On behalf of most of our clients, we ultimately manage the savings of many pensioners – who might be our parents, grandparents, family and friends.
We need to ensure there is enough liquidity in the funds to pay all expenses – from property manager and facility manager to utilities and loan interest.
In Asset Management, we are right on the front line of this pandemic. Our asset managers across Europe receive daily calls from distressed tenants. They often ask for understanding of their individual circumstances or seek advice and guidance.
We are operating inside a delicate and valuable ecosystem of occupiers, clients, third parties and financial institutions. That is why we always try to achieve a fine balance to not upset the ecosystem by favouring one party over the other.
With our comprehensive local knowledge, we can be sensitive to everyone’s needs and protect the ecosystem from any imbalances.
This knowledge is leveraged every time the Asset Management team proposes solutions tailormade to the occupiers and the property at hand – for the benefit of the stakeholders of the entire ecosystem.
Over the years we have forged strong relationships of trust with all our stakeholders – trust we aim to maintain during the crisis, so we will emerge stronger with an even closer relationship with all our partners. This will give us an even better position to manage the next set of challenges.
Keeping the balance in our delicate ecosystem makes us a trusted partner.
By Mahdi Mokrane, Head of Investment Strategy & Research, PATRIZIA
In my long career in the real estate industry, I have never known a time when Research was as much in demand as now. The Global Financial Crisis of 2008/9 also had epic proportions but was less sudden. The Eurozone crisis of 2010-12 and the remaining uncertainty around the terms of Brexit were much less globalised in nature than what we have been living through this year. The Covid-19 pandemic has accelerated certain trends we had already spotted before the crisis. like non-essential retail coming under increased pressure. Today, more than ever, top decision makers at global pension funds and insurance companies need the best possible market intelligence at their fingertips to make the right allocation decisions.
Our “House View” is important for our investors to assess how the Covid-19 pandemic crisis will continue to unfold in terms of market sentiment, economic and social impact and how the new normal will impact investments in the post-Covid 19 world.
Frequent questions include: What recovery scenarios do we anticipate in the short and longer term? What will happen to core and non-core office assets in European A-cities like Dublin, London, Frankfurt or Amsterdam? Are you seeing an end to urbanisation and a shift to de-urbanisation in the future? How long will shopping centres and high street retail and hospitality remain under pressure? Will logistics and residential continue to be that resilient? What should a diversified European logistics portfolio look like?
Whilst we, like all researchers around the world, have limited visibility on the long term, our top priority is to produce the most trustworthy and reliable investment research possible for our clients, colleagues and partners. We do this by constantly monitoring a broad range of economic and social indicators like jobs market statistics, consumer behaviour, government fiscal programmes to aid economic recovery in leading economies, investment and leasing dynamics, as well as travel and hotel bookings, rent collections figures – just to name a few elements. Given the breadth and scope of our business, my team and I constantly supplement our top-down views with the views and opinions of what our PATRIZIA colleagues see on the ground. Mixing top-down and bottom-up views is in my opinion the most powerful and effective way to generate “House View” convictions that clients appreciate and act upon.
And we are seeing pronounced regional differences in the world and within Europe in the way real estate markets are faring. These differences depend on the depth of the impact of the pandemic on local populations and health sectors, the severity of the lockdown measures taken and the size and scope of fiscal and monetary support packages.
We will continue to face a difficult and fluid post-Covid environment for our industry with the full economic impact of the crisis still unknown. That is why more than ever, trusted and reliable sources of intelligence as offered by PATRIZIA really matter. We are proud that our clients trust us to give them access to the most accurate and balanced in-depth research possible, allowing them to make the right decisions in challenging times.
PATRIZIA’s Research team measures the pulse of the world economy.
By Philipp Schaper, Head of Transactions, PATRIZIA
Since the start of the COVID-19 pandemic, the real estate industry like many other sectors of the global economy has seen a slowdown in transaction activity. The ‘new normal’ has presented all of us with unprecedented challenges and uncertainties. As lockdown rules loosen in many markets, I am starting to see the first signs that investors are slowly gaining confidence and deals are beginning to return to the market.
I have spent over 20 years in the industry, successfully completing transactions through property cycles and previous economic downturns, including the Global Financial Crisis of 2008/9, and every experience has had a direct influence on my future investment decisions.
Yes – the environment is challenging out there, but our transactions team has been able to successfully source and successfully close a number of significant deals across Europe during the last 3 – 4 months.
Thanks to our combined industry experience, our close communication with our extensive network of contacts and our strong existing relationships, our PATRIZIA transaction team is seen as a trusted partner.
These strong networks and partnerships have been developed and nurtured over many years by my team, which, in this current environment, has enabled us to complete transactions over video calls with people we know well and have worked with before. Similarly, the deep relationships we have with our lenders means, where we have spotted opportunities, we have been able to act upon them by accessing finance where newer, less-established companies may have struggled.
During uncertain times, deploying experience, exercising caution and not rushing into transactions without rigorous due diligence is essential to making good investment decisions.
Despite the uncertainty caused by COVID-19, following these key principles has served us well and enabled us to continue sourcing attractive opportunities and completing deals. The challenges we have overcome in last few months have provided us with even more valuable experience for the future and have made us, and also our relationships with all our stakeholders, even stronger as their partners.
Experience and diligence make us a reliable transactions partner.
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