Patrizia buys €900m German resi portfolio

The German-based real estate investment company has bought out the investors of a private residential real estate fund which owned more than 14,000 apartments.

Patrizia Immobilien, the German-based real estate investment company, has acquired a massive residential real estate portfolio after buying out the investors of a Swedish fund which owned it.

The firm effectively has paid approximately €900 million for more than 14,000 apartments held by the by the Swedish fund Hyresbostäder i Sverige III, a vehicle managed by Oslo-based alternative investment managers Obligo Investment Management.

The investors in the fund were Norwegian real estate agency, Norwegian Boligutleie, and Swedish real estate company, Swedish Hyresfastigheter.

The fund consists of more than 5,000 apartments in Berlin, and also has assets in Munich, Stuttgart, Frankfurt, Cologne, Dusseldorf and Hamburg, as well as almost all regional capitals and metropolitan areas in West Germany. The portfolio also includes 500 residential units in Umea, Sweden.

“This off-market transaction demonstrates that, with its pan-European positioning, Patrizia is capable of seeking out attractive real estate investments not only through established channels,” commented Wolfgang Egger, chief executive of Patrizia.

“We were only able to conclude this transaction successfully because, firstly, we have continuously improved our financial standing in recent years and now have a well above-average equity base. Secondly, Patrizia has highly qualified in-house teams who have a great deal of experience with complex transactions, financing and real estate valuations.”

Patrizia had already been investing heavily in the housing market in 2015. Just last week, the firm made its first foray into the UK private rental sector (PRS) with the acquisition of the First Street site in Manchester which will spark the launch of a dedicated PRS fund.

Patrizia currently employs 800 people with 90 percent of its €15 billion portfolio managed on behalf of third-parties such as insurance companies, pension fund institutions, sovereign wealth funds and savings banks.