Patrizia is On The Hunt for New Purchases in Bilbao, Sevilla & Valencia

10 December 2018 – Eje Prime

Patrizia Immobilien is confirming its interest in the Iberian real estate market. The German investment manager, which has been present in Spain and Portugal since 2015, has set itself the short-term objective of entering Bilbao, Sevilla, Valencia and Oporto, through the purchase of new assets, according to comments made by Borja Goday, the Director General of the company in the Iberian Peninsula, speaking to Eje Prime.

Until now, the company has invested €870 million in total in real estate in the Spanish and Portuguese markets. Madrid, Barcelona, Málaga and Lisbon are the cities in which Patrizia is already present, “with minimum investments of €15 million but where that figure could exceed €500 million if the operation is worth it”, explained the executive.

In fact, the manager participated in the process to acquire one of the office buildings that comprise the Cuatro Torres Business Area in Madrid. Moreover, the company not only invests in the office segment, it is also committed to other markets such as the residential, retail, hotel, logistics and alternative asset segments (including student halls, complexes for the elderly and parking spaces).

Currently, Patrizia’s asset portfolio in Spain includes Serrano 90, located on Madrid’s golden mile and Gran Vía 21, also in the Spanish capital, which houses a hotel and a retail premise. Nevertheless, the latest major operation by the manager on the peninsula was the purchase of an industrial plot spanning 66,424 m2 in Toledo for €37.5 million. The other three logistics platforms that the company owns in Spain are located in Madrid and Barcelona.

Patrizia and its great interest in Spanish property

With its headquarters in Madrid and a staff of eleven, Patrizia arrived in Spain just three years ago. “At the end of 2017, we purchased Triuva and Rockspring, two companies that already owned assets on the peninsula”, explained Goday, who added that “the rapid growth of the group in both the Spanish and Portuguese markets is due to those two acquisitions”.

“Spain is still an attractive market, we still have demand and that is why we are launching new operations on such a frequent basis”, said the director. Since the beginning of the year, the manager has been on the hunt for capital from Spanish institutional investors, although, as Goday explains, it is not an easy task, since “they do not invest from one day to the next”.

One of Patrizia’s other plans on the peninsula is to strengthen its presence in the rental market. “It is a segment that we like a lot and for that reason, if we find an appropriate residential or office building, then we would not rule out buying it”, explained the executive. Nor does the group rule out alliances with Socimis or the acquisition of a property developer to grow in the Spanish residential sector. In this sense, Goday says that “a good opportunity has not presented itself yet” and that “it would all depend on the quality and location of the land that they own”.

Patrizia is currently present in more than twenty European countries, including, besides Spain and Portugal, important markets such as Italy, France, the United Kingdom, Ireland, Belgium and Luxembourg. The group’s main focus of activity is Germany, where it launched its activity 32 years ago and where it is a listed company (…).

Original story: Eje Prime (by B. Seijo)

Translation: Carmel Drake

Triuva Wants to Spend €100M in Spain Following Its Integration into Patrizia

3 April 2018 – Eje Prime

The German fund Triuva is looking for opportunities in Spain. The company, which has just completed its integration into another German real estate company, Patrizia, is going to allocate around €100 million to the acquisition of new assets in the Spanish market. The group is currently finalising the renovation of a building on Calle Serrano, 90 in Madrid, and has already leased the 6,300 m2 of retail and office space to Maisons du Monde and Natixis, respectively.

The fund is still hungry for new assets in Spain, and so it is considering the acquisition of office buildings, commercial assets and even hotels. Currently, the Spanish arm of Triuva is fully integrated into the Spanish business of Patrizia, which has its offices on the Madrilenian street Calle Génova.

Patrizia purchased the entire Triuva business in November last year, whereby creating a real estate giant of more than €30 billion. Triuva manages some forty funds around the world and has teamed up with more than eighty institutional investors in recent years.

Triuva has around 270 assets under management, worth €9.7 billion. In Spain, the fund owns three properties in prime locations. The first, acquired during the first quarter of 2015 for €70 million, is located on Calle Preciados, 4, and is leased to the fashion chain Sfera, itself owned by the Madrid-based department store group El Corte Inglés.

Last year, the fund acquired the Adidas flagship store located on Gran Vía, 21, also in Madrid, which had been owned until then by Iberfin Capital, which is in turn, owned by Medcap Real Estate. The consideration paid for that operation was not disclosed (…).

Serrano 90, its latest project 

The Serrano 90 building, also owned by Triuva, is located in the heart of Madrid’s golden mile. 70% of its total available space is allocated to offices and the remaining 30% to commercial use; the property also has a parking lot on its lower floors. According to sources in the sector, the fund has spent around €10 million on the renovation of the asset.

At the beginning of this year, Triuva closed the rental of 6,300 m2 of retail and office space. The retail premises have been leased to the French firm Maisons du Monde, which is going to open its first flagship high street store in Madrid, to accompany the store it already has in central Barcelona.

The household furniture and accessories firm is going to lease 1,860 m2 of space in the building spread over three floors (…). Similarly, the property is going to house the headquarters of Natixis, a French corporate and investment bank, whose offices are currently located in Recoletos. Triuva and the banking institution have signed a rental agreement for 2,940 m2 of office space, as well as the terrace and 34 parking spaces in the Serrano 90 building.

Original story: Eje Prime

Translation: Carmel Drake