Patrizia Immobilien, the Augsburg-based real estate investment manager, has been awarded a €400 million mandate by Bayerische Versorgungskammer (BVK), Germany’s largest pension fund, to create a pan-European residential property portfolio.
The portfolio already contains around 1,200 flats in the Netherlands but, as investment manager, Patrizia has plans in place to add further residential properties in the Netherlands and the Nordics.
The mandate will see Patrizia invest in both existing real assets and new construction projects in the two countries.
The Dutch portfolio was bought by Patrizia in March for around €150 million, and is comprised of 1,275 flats in 23 locations across the Netherlands, including Amsterdam, Zwolle and Dordrecht.
“We are pleased that one of Germany's biggest institutional investors would now like to leverage our competence and skill as a European real estate investment company with local experts in all relevant real estate markets for its investment strategy in the form of an individual mandate as well,” said Jochen Reith, group head of institutional clients at Patrizia.
The arrangement is the second of its kind to be awarded by BVK in as many weeks. Just last week, the pension fund struck a deal with long-term collaborator, Finnish private equity fund CapMan. The €400 million mandate was to invest in Nordic residential markets.
In January, BVK teamed up with the European arm of Houston-based fund manager Hines to launch a €1.3 billion separate account program to invest in European high street retail. The partnership said it was focused on acquiring and managing core-plus, value-add and development retail assets in prime locations on high streets in major markets across 20 countries in Europe.
Patrizia also hit the news last week, with the €400 million purchase of a 1.1 million square foot portfolio of nine office and commercial properties in prime German cities. The seller was Allianz Real Estate, the property arm of the Munich-based financial services company.