Patrizia has sold a portfolio of 22 non-core residential properties on behalf of a German residential strategy.
The strategy is to refocus the fund’s portfolio towards larger, more sustainable properties in locations that are more affordable or that are underpinned by significant future growth potential, acording to astatement by Patrizia.
The strategy will also target high growth locations outside of Germany, with capital being recycled into key European markets including the Netherlands, Denmark, Scandinavia, Ireland, France, Spain and Italy.
The disposal consists of 22 assets, which comprise a total of 1,336 homes across 14 German cities, that have been acquired by P&P Gruppe GmbH and Ampega in two separate transactions.
“We have taken the strategic opportunity to capitalise on current market conditions and dispose of these smaller assets, enabling us to crystallise returns. This also aligns with our efforts to refocus the portfolio on properties with higher numbers of homes in areas that we have identified as being more affordable for our residents, or that are well positioned to benefit from future socio-economic growth,” said Alexander Hanisch, Fund Management, at Patrizia.
“The residential sector across Europe has shown considerable resilience during the Covid-19 pandemic and is being seen by investors as a safe haven that provides sustainable income. We retain a high conviction for the sector and therefore plan as a forward thinking partner to recycle the proceeds of these sales into new geographies as part of our repositioning. We will concentrate on sourcing deals for larger assets at attractive price points that allow us to create value and deliver high quality and sustainable returns for our clients.”