Patrizia flips €1.1bn German resi portfolio

The German-based real estate investment company has sold the portfolio only 6 months after acquiring it for around €900 million.

Patrizia Immobilien, the German-based real estate investment company, has sold a portfolio of more than 13,500 German residential units for €1.1 billion only six months after acquiring the assets for €900 million.

The firm originally acquired the residential property portfolio in May after buying out the investors of a Swedish fund which owned it. The assets were originally held by the by the Swedish fund Hyresbostäder i Sverige III, a vehicle managed by Oslo-based alternative investment managers Obligo Investment Management.

“The sale marks the next systematic step in the investment strategy that was announced when we made the acquisition, namely to move forward quickly with placement of the residential portfolio,” commented Wolfgang Egger, chief executive of Patrizia. “This transaction once again underscores our core competence when it comes to complex restructuring, financing and property evaluation.”

Listed German property company Deutsche Wohnen acquired the portfolio which consists of more than 5,000 apartments in Berlin, and also has assets in Munich, Stuttgart, Frankfurt, Cologne, Dusseldorf and Hamburg, as well as other metropolitan areas in Western Germany.

Patrizia had been investing heavily in the housing market in 2015. The firm made its first foray into the UK private rental sector (PRS) in May 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.