Patrizia boosts AUM by 50% with Triuva buy

Patrizia Immobilien, the Augsburg-based real estate investment manager, has increased its overall real estate assets under management by around 50 percent following the acquisition of Frankfurt-based specialist fund manager Triuva.

The acquisition, according to founder Wolfgang Egger, not only significantly grows the business but has placed it among the largest real estate investment managers in Europe. It also broadened Patrizia’s product range, enabling its institutional and private investors to access new markets, assets classes and risk profiles, added Egger. He has previously declared his ambition to turn Patrizia into a global force in the industry and the Triuva capture, he said, further reinforces this aim.

Although neither Patrizia nor IVG disclosed the price of the deal, several German media outlets have quoted a range of between €200 million and €250 million with an original valuation by Triuva of €185 million.

“It will strengthen our European network, expand our market presence and broaden the range of products and services for our clients. We will also consolidate our position as the leading independent real estate investment manager in Europe.” Egger

In recent years and months, Patrizia has developed a taste for mergers and acquisitions deals. In 2011, it bought LB Immo Invest, from a subsidiary of HSH Nordbank, and two years later it acquired GBW, the listed housing subsidiary of regional bank Bayern LB – both deals significantly increased the firm’s asset base.

Then last month, the firm also landed global fund of funds business Sparinvest last month. The Danish multi-manager has AUM of €1 billion and runs four active funds with equity totaling €1.5 billion.

Triuva, a subsidiary of Bonn-based real estate company IVG, manages 40 real estate funds and has partnerships with more than 80 institutional investors. It focuses on commercial real estate in the office, retail and logistics sectors and, as of today, the firm manages real estate assets of around €9.8 billion.

Its parent company IVG hit the headlines last year when it sold its OfficeFirst platform to sector giant Blackstone for around €3.3 billion, one of the largest real estate deals in Europe in 2016.

Egger said the Triuva purchase was a “perfect fit” for his firm’s growth strategy as well as bringing benefits such as diversification and greater share of revenue through asset management fees.

“It will strengthen our European network, expand our market presence and broaden the range of products and services for our clients,” said Egger. “We will also consolidate our position as the leading independent real estate investment manager in Europe,” he added.