PATRIZIA successfully diversified global real assets platform in FY23 closing over EUR 3.5bn of transactions
Significant investments made in sectors underpinned by long-term megatrends including digitalisation, living and energy transition
In a challenging market, PATRIZIA was an active net buyer for its clients, deploying capital in key global markets and strategic sectors underpinned by long-term transition megatrends
Positive investment activity highlights PATRIZIA’s cash-rich client base and available firepower to execute attractive market opportunities
PATRIZIA further positioned real assets platform for growth through active asset management, comprehensive value-add investment, refurbishment programmes and major debt refinancing
Strong leasing activity continues to underline robust tenant demand for high quality commercial real estate in core cities and sub-markets
Augsburg, London, 15 February 2024. PATRIZIA, a leading partner for global real assets, continued to strengthen its international investment platform in FY23, closing over EUR 3.5bn1 of transactions in highly attractive market sectors underpinned by the major transition megatrends shaping economies and societies across the globe.
Of the capital deployed, over a fifth (21%) was in the digitalisation of communities and smart city solutions through new fibre networks and broadband operators, while 20% was invested into the living sector that included major acquisitions of affordable and sustainable build-to-rent housing. Over 11% of capital was deployed in the global energy transition via investments in Electric Vehicle (EV) charging, energy distribution and renewables, and nearly 10% was committed to real estate and infrastructure credit opportunities.
Alongside organic AUM development, PATRIZIA also significantly invested in its existing real assets platform to position it for future growth. Its refurbishment and development programme amounted to EUR 2.6bn of projects (44% office and 37% living), while the group managed around EUR1bn of additional value-add capex projects across its portfolio, which included the repositioning and solarfication of urban logistics in Germany.
In addition, the group signed over 575,000 sq. m. of commercial lease agreements with major tenants such as Clifford Chance, Coca-Cola Group, Commerzbank and BMW. Nearly EUR 3bn of debt refinancing was secured within its real assets platform for flagship assets including the Commerzbank Tower in Frankfurt and the caverns energy storage facility in northern Germany, which is testing the safe large-scale storage of hydrogen.
Asoka Wöhrmann, CEO of PATRIZIA, said: “Our economies and societies across the globe are experiencing fundamental shifts in the way people live, work and do business. In this world in transition, the most exciting and attractive investment opportunities will be unlocked by smart real asset players who have deep expertise in both real estate and infrastructure. While the market remained challenging in 2023, we successfully invested in attractive sectors underpinned by the long-term market transitions, we diversified our global real assets platform to make it even more resilient, and we continued to generate value for our global clients as an active investor in our long-term core markets.”
Transaction volumes and investment trends in real assets
Throughout FY23, more than 80% of all transactions were acquisitions or new investments, ensuring PATRIZIA capitalised on challenging market conditions to organically grow its AUM and strengthen its broad international real assets platform.
Total transaction volumes were split across real estate (55%) and infrastructure (45%), with around 25% of all deals closed in the US and APAC markets, significantly expanding the international reach of the group’s investment platform.
For PATRIZIA’s real estate business, the most active markets for transactions were Germany (35%), Iberia (15%), UK&IE (12%), Benelux (10%), and the Nordics (10%), underlining PATRIZIA’s role as an active investment manager for its clients in core European markets. The group continued to build its portfolio of high-quality real estate assets, with the highest investment volumes in the logistics and residential sectors, while selective and strategic disposals reduced the group’s exposure in the office and retail sectors.
Across PATRIZIA’s infrastructure platform, the group committed the most capital to investments in digital infrastructure, EV charging, renewables and energy distribution, and infrastructure debt, further expanding its exposure to key sectors underpinned by long-term megatrends. The most active markets for infrastructure transactions were the US (40%), Germany (11%) and Australia (11%).
Strengthening the PATRIZIA platform in 2023
In FY23, PATRIZIA signed a number of significant transactions to drive the growth of its flagship value-add and mid-market investment strategies in real assets. These included the acquisition of a portfolio of urban logistics properties in Sweden to initiate PATRIZIA’s flagship TransEuropean VIII value-add programme. In addition, PATRIZIA launched a significant investment programme to develop a portfolio of affordable and social housing projects in the UK through its Sustainable Communities impact strategy, which has a total investment volume of over EUR 500m.
In the US, PATRIZIA’s Smart City Infrastructure strategy committed over half a billion euros of equity to five fibre projects delivering high-speed connectivity to small-medium sized communities across America. The group also entered the EV charging sector with a major investment into the rollout of 400 ultra-fast EV charging stations across Germany via its flagship European Infrastructure Fund III. In Asia, PATRIZIA invested in a solar and battery development programme through its newly launched APAC Sustainable Infrastructure Fund that is a joint venture with Mitsui & Co.
PATRIZIA’s preliminary financial results release for FY23 will be made available on 28 February 2024.
1 The above-mentioned closed transaction volume figure for FY 2023 may differ from the figure released in the upcoming preliminary financial results on 28 February 2024 due to a different calculation methodology for the purpose of financial statements.
PATRIZIA: A leading partner for global real assets
With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 40 years. PATRIZIA manages approx. EUR 58 billion in assets and employs around 1,000 professionals at 28 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis (“colourful circle”) in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation. The PATRIZIA Foundation has given more than 600,000 children and young people worldwide access to education, healthcare, and a safe home to get the chance to live a better self-determined life over the last 25 years. You can find further information at www.patrizia.ag and www.patrizia.foundation
