Patrizia Immobilien, the global partner for pan-European real estate investment, has secured a fund management mandate in Italy from Fondazione Cariverona – one of the most important Italian bank foundations and founder of UNICREDIT Bank.
Verona Property is an Italian real estate fund with assets under management (AUM) of €180 million. It will be managed on behalf of the institutional investor, Fondazione Cariverona, with the aim of unlocking value from the current assets and ultimately recycling capital to deliver a more diversified real estate portfolio.
The fund portfolio includes four assets totalling about 40,000 sq m in the historical centre of Verona, as well as a prominent development project that is underway in the periphery of the city, Ex Magazzini Generali, which is located in front of the main exhibition centre. When completed, the development will include 44,000 sq m of new offices and retail space with high-profile tenants such as GlaxoSmithKline, Unicredit and Eataly already secured.
The main assets in the centre of Verona include Via Giuseppe Garibaldi 1 and 2, which together total 30,000 sq m. A value creation asset management plan is in place which aims to convert the current use from office space into a complex with hotels, serviced apartments and the first congress centre in Verona.
Dario Strano and Pierluigi Scialanga, who joined Patrizia Italy in September 2018, are managing this mandate. Dario Strano commented: “This fund management mandate demonstrates Patrizia’s ability to attract institutional investors in new territories thanks to the combination of our outstanding global reputation and on the ground expertise. Italy is very much a growth platform for Patrizia and we look forward to leveraging our local knowledge and experience across the real estate spectrum on behalf of Italian and pan-European real estate investors looking to invest here.”
Patrizia manages around €700 million of real estate assets in Italy.
RPA Perspective Following the release of its 2018 Preliminary Results on 18 February 2019, Patrizia Immobilien last month published its financial year 2018 Annual Report confirming a strong operational performance as the result of an active year strengthening its pan-European investment platform.
As previously reported, assets under management (AUM) increased 87.3% YOY to €41.0 billion, driven by the successful consolidation of corporate acquisitions and organic growth across the business. Approximately €2.6 billion of funds were raised from institutional, (semi-)professional and private investors. Total service fee income grew 51.1% YOY to €320.2 million, enhancing the stability of the business and its revenue streams. Operating income was up 72.0% to €141.4 million.
Based on the current organic growth trajectory, Patrizia has confirmed that it expects to generate a 2019 operating income in the range of €120.0-130.0 million, which, following the very strong performance fees generated in 2018, assumes a rather normalised level for 2019. The 2019 guidance hence implies further underlying growth in recurring management and transaction fees compared to 2018.
Karim Bohn, CFO of Patrizia said: “Operationally, 2018 was an extremely active year for PATRIZIA and this has delivered strong results that are in line with our Group strategy. The proportion of the income we are now generating is increasingly from management fees, which offer a more stable, sustainable and higher quality source of revenue.”
