PATRIZIA Immobilien AG has been active as an investment manager on the real estate market in 15 European countries for more than 30 years. PATRIZIA’s range includes the acquisition, management, value increase and sale of residential and commercial real estate over own licensed investment platforms. As one of the leading real estate investment companies in Europe PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. Currently, the Company manages real estate assets worth almost EUR 20bn, primarily as portfolio manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks, but also as co-investor.
PARTIZIA’s core business is the investment management of real estate assets and portfolios throughout Europe for institutional and retail clients. PATRIZIA generates management fees for its services and investment income from co-investments and principal investments. In accordance with this, the company’s activities can be split into three categories:
Business for third parties involves the placement and management of special funds by four regulated Group investment management companies on behalf of private and institutional investors. PATRIZIA generates stable, recurring income from the management of the assets. Our so-called third party business does not involve any equity investment by PATRIZIA. Third-party business contributed EUR 12.3bn to the Group's total assets under management as of 30 June 2017 (31 December 2016: EUR 11.6bn).
Through co-investments, PATRIZIA invests in real estate properties in collaboration with clients. These investments not only demonstrate commitment to the client and the transaction, but also generate management fees in a similar way the third-party business does, as well as income from participations for PATRIZIA. Shareholders profit from the performance of an attractive and diversified pan-European real estate portfolio.
As of 30 June 2017 co-investments made up EUR 6.8bn of the Group's total assets under management (31 December 2016: EUR 6.9bn).
In general, PATRIZIA is active as an investment manager for institutional and private clients and therefore seeks to avoid any conflicts of interests with its own investments. Principal investments, i.e. transactions on PATRIZIA´s own account, are therefore either structured as an interim financing for closed-end mutual funds or early-stage investments with the purpose of being included in institutional funds at a later point in time. In addition, PATRIZIA still holds a legacy portfolio of single residential unit sale assets. As of 30 June 2017 equity invested in principal investments amounted to EUR 0.1bn (31 December 2016: EUR 0.1bn).