Corporate overview
PATRIZIA is a leading independent investment manager for international smart real assets, offering a comprehensive range of services tailored to institutional and semi-professional investors. Managing over EUR 55 billion in assets, we employ around 850 professionals across 26 locations worldwide. Our diverse portfolio includes real estate, infrastructure, alternative investments, and project developments, serving clients such as insurance companies, pension funds, and sovereign wealth funds from Europe, the US, and Asia. PATRIZIA’s investment solutions are driven by the ‘DUEL’ megatrends – digital, urban, energy and living transitions - and capitalise on the opportunities arising from these transformative global shifts.
Recognised as the #1 independent European real estate investment manager in the residential and value-add sectors (IPE Real Assets Top 150 Real Estate Investment Managers, November/December 2023), we have been committed to delivering long-term value since 1984. Our investments contribute to building smarter communities and sustainable futures – a commitment further reflected in the PATRIZIA Foundation’s work to empower children globally through education. We align financial performance with social impact, meeting the objectives of investors seeking responsible and sustainable growth.
Investment principles & strategy
In an ever-evolving market landscape, we view real assets as critical to shaping the future. Our investment strategy is informed by the fundamental transitions occurring in digitalisation, urban development, energy and living. These megatrends are central to our approach, enabling us to position our investments strategically for long-term growth.
We combine decades of experience with advanced technology, utilising big data analytics and machine learning algorithms to identify and capitalise on opportunities in sectors such as urban logistics, renewable energy, energy storage, data centres, social infrastructure and affordable housing. This blend of traditional insight and modern innovation allows us to make informed, forward-looking investment decisions.
Environmental, Social, and Governance (ESG) considerations are fully integrated into our investment process. We are committed to achieving Net Zero Carbon status by 2040, focusing on reducing carbon emissions, enhancing social impact and maintaining strong governance practices. This commitment to ESG is not an add-on; it is central to how we operate and aligns with our long-term investment objectives.
Sector forecasts
INDUSTRIAL: The industrial sector, the best-performing sector in the previous European real estate cycle, experienced a sharp slowdown in demand over the last 2–3 years due to overcapacity and occupier cost pressures. Vacancy rates and rental growth have normalised, but medium-term prospects remain benign given structural demand tailwinds such as e-commerce, defence revival, and reshoring. Income growth expectations remain strongest for supply-constrained urban industrial as well as niche segments such as selfstorage.
OFFICE: Occupier demand remains polarised by asset and location quality, with more tenants preferring to move from secondary stock into prime CBD assets. This is making the sector more capital-expenditure-intensive but also creates upward rental growth pressure, given the scarcity of prime space in many cities. Average vacancy rates remain much lower than in the US. Nonprime assets are attractively priced in relative terms, which should improve liquidity beyond the ‘core’ segment of the market. Nevertheless, the quality of amenities, location and ESG credentials remain important for tenant demand and liquidity.
RESIDENTIAL: While regulatory pressures are expected to intensify amid persistent supply-demand imbalances, the sector continues to demonstrate very robust fundamentals. Inflation-linked rental growth, resilient cash flows, and diversification benefits reinforce its appeal as a strategic allocation for core capital. Given decarbonisation goals, the energy efficiency of buildings in the residential sector will have a rising impact on returns and liquidity. In addition, alternative segments of the residential universe, such as student housing or coliving, which are less regulated and show a yield premium to traditional multifamily rental housing, also offer attractive opportunities.
RETAIL: The outlook for retail subsegments has improved following the structural adjustment at the beginning of the decade. Structural (e-commerce) and cyclical (cost-of-living crisis) headwinds continue to shape investor sentiment in the sector, but market fundamentals today are more favourable, particularly for outlet centres and convenience retail subsegments. Discretionary retail is returning as a viable income strategy, but polarisation remains high. Out-of-town retail benefits from a more defensive income profile and from potential value creation through EV charging and photovoltaic systems.
INFRASTRUCTURE: Active management will continue to be a key driver of infrastructure equity returns. To that end, the mid-market segment continues to offer good potential for the active management of infrastructure assets, through a greater breadth of opportunities, more scope for value creation in asset management, and the potential for attractively priced investments. Europe is likely to be a key area of focus for infrastructure investment amid increasing policy uncertainty in the US and tailwinds from supportive fiscal policy – for example, Germany’s €500 billion special fund (Sondervermögen), which will focus on decarbonisation and modernising infrastructure. Highincome infrastructure debt will continue to produce appealing returns while base rates remain elevated.
Strategic corporate development
Our Strategy 2030 outlines our ambition to grow our AUM to EUR 100 billion over the next five years. This growth will be driven by capitalising on the DUEL megatrends: digital transition, urban transition, energy transition and living transition. These trends are reshaping economies and societies, and we are strategically positioned to lead in emerging sectors such as urban logistics, renewable energy, social infrastructure, and affordable housing.
Central to this strategy is the expansion of our flagship funds in both real estate and infrastructure. We are also pioneering the development of a new asset class – ‘Re-Infra’ – which strategically combines elements of real estate and infrastructure to address the growing demand for integrated urban solutions. This innovation is driven by our commitment to harness the potential of smart cities, reflecting the convergence of real estate and infrastructure as cities evolve.
Our entrepreneurial culture fosters agility, allowing us to adapt quickly to new opportunities and trends. As the #1 manager of open-ended German Spezial- AIFs in real assets (BVI), we are committed to maintaining our market leadership while continuing to innovate and expand our offerings.
Performance verification
Our diverse senior team drives a rigorous investment process, positioning PATRIZIA as a leading European real estate manager with a strong local presence, proprietary data insights and full ESG integration. Our top rankings in residential, value-add, and dealmaking underscore our market access and execution excellence, delivering value to clients.
COMPLIANCE STATEMENT
These materials are provided for use by qualified institutional investors for information purposes only and are not intended as solicitations of investment business. PATRIZIA will not accept any responsibility for this publication or the information included herein. In particular, PATRIZIA has not verified or examined the information contained in, or referred to by, this publication or this publication in its entirety, nor has it convinced itself in any other manner of the reasonableness, correctness and completeness of the information concerned. PATRIZIA shall not provide any warranty or guarantee in relation to the reasonableness, correctness or completeness of the information or opinions in or concerning this publication.
