Patrizia AG (or PATRIZIA AG as the company writes it) is a global provider of pan-European real estate investments. Based in Augsburg, Germany, the company is listed on the Frankfurt stock exchange and a member of the SDAX and MSCI World Small Cap Index.

PATRIZIA AG
Joint-stock company
ISINDE000PAT1AG3
IndustryReal Estate Investment Management
Founded1984
HeadquartersAugsburg, Germany
Key people
  • Wolfgang Egger (CEO)
  • Theodor Seitz (Chair of the Supervisory Board)
Revenue350 Mio. Euro
Number of employees
850
Websitehttp://www.patrizia.ag/en/

The company has approximately 850 employees (FTEs).[1] Patrizia's business activities as a real estate investment manager include, but are not limited to, the acquisition, management, value optimization and sale of residential and commercial properties. The company provides institutional, semi-professional and private investors investors with direct and indirect real estate investments in Germany and across Europe. Since 2016, the company has also been offering funds for private investors through its subsidiary PATRIZIA GrundInvest.

The purchase of GBW (renamed to Dawonia in 2019) in April 2013 increased the value of real estate assets managed by Patrizia to around €12 billion.[2] With the announcement of the acquisitions of Rockspring Property Managers LLP, TRIUVA Kapitalverwaltungsgesellschaft mbH and the global fund of funds provider Sparinvest Property Investors (SPI) in the fourth quarter of 2017, Patrizia's assets under management more than doubled to €38.7 billion compared to 2016 and today amount to €41.0 billion.[1]

The company differentiates itself from competitors by a broad network of local expertise in each market in which it operates. It has offices in five German cities, along with subsidiaries in Amsterdam, Brussels, Copenhagen, Dublin, Helsinki, London, Luxemburg, Madrid, Milan, Paris, Stockholm and Warsaw. In addition, there are investor relation hubs in Hong Kong, Melbourne, New York, Seoul, Tokyo. Therefore, the company is active as an investor and service provider in 18 countries on four continents.[3]

HistoryEdit

 
Headquarters of Patrizia AG in Augsburg (2014)

The company was founded in 1984 by Wolfgang Egger. Egger, who remains CEO, gained his first experience of the real estate sector with a summer job on a construction site before he had even reached his teens.[4] At the age of 19 he built a house, which he then went on to sell. He used the proceeds from the sale to buy Patrizia's first apartments.[5] Within three years of its founding, Patrizia was privatizing 100 apartments per year.[6] The company's focus was on Munich and Augsburg. Patrizia's strategy involved first buying apartments in Munich's Olympia-Pressestadt, along with apartments owned and used by Bayer AG and other companies, as well as large residential complexes in Augsburg, Obergiesing, Perlach and Schwabing before selling the apartments, primarily to their tenant occupants.

Following the company's IPO in 2006, Patrizia acquired residential real estate in some of Germany's major cities and conurbations, expanding its portfolio to include around 13,000 apartments.[7] At the same time, the company diversified its services and launched Spezialfonds (special funds) for institutional investors. Together with two international pension funds, the company founded PATRoffice GmbH & Co. KG to facilitate investments in commercial real estate.[8]

In 2011, Patrizia took over Hamburger LB Immo Invest GmbH, an initiator of commercial real estate Spezialfonds, and went on to expand the business. A co-investment with a consortium of pension and insurance funds enabled Patrizia to acquire LBBW Immobilien GmbH, owner of around 21,500 apartments, for €1.435 billion in February 2012.[9]

Led by Patrizia, a co-investment consortium of pension funds, insurance companies and savings banks acquired 92% of the shares in GBW AG in April 2013. GBW AG's housing stock totaled approximately 32,000 apartments in Bavaria; the shares were acquired for €2.45 billion.[10] With the takeover of the British Tamar Group in the same year, Patrizia simultaneously expanded its international operations.[11]

After the integration of Rockspring Property Managers LLP, Triuva Kapitalverwaltungsgesellschaft mbH and Sparinvest under one common Patrizia brand in 2018, Patrizia acquired a strategic stake in Evana, an artificial intelligence business, as part of its stated goal of becoming "the technology leader in European real estate investment management." [12] In January 2019, Patrizia announced the acquisition of Japan-based Kenzo Capital Corporation. Kenzo is an established local platform serving European clients interested in investing in Japanese residential real estate through a dedicated fund that was launched in 2017 in cooperation with Patrizia.[13]

In June 2019, Patrizia Immobilien AG changed its legal name, in line with a resolution of that year’s Annual General Meeting, to ‘PATRIZIA AG’. “The new name of the company and the renouncement of the German addendum Immobilien takes into account our stronger international orientation we have focused on for some time now,” commented Wolfgang Egger, CEO of PATRIZIA.[14]

CriticismEdit

The company was subject to public criticism in 1992 when, according to a report in Der Spiegel (37/1992 – 'Wie Augsburger Altbauten mit Hilfe von Asylbewerbern entmietet werden') Wolfgang Egger is reported as having said, “Every apartment that becomes vacant will be filled with asylum seekers.” ("Jede frei werdende Wohnung wird mit Asylanten belegt"), a statement that is reported to have unsettled residents of apartment buildings at Rote-Torwall-Straße 16 and Schülestraße 4 in Augsburg. Egger denied ever making the statement.[15]

In 2004, Germany's largest pension fund, BVV, awarded Patrizia a mandate as property and asset manager of the BVV's real estate assets. During the same year Patrizia was in the firing line in Hamburg as it developed a Mövenpick hotel in the former water tower in Sternschanzenpark despite questions surrounding the legitimacy of the project's building permits. Nevertheless, Patrizia later received two prestigious awards for the successful redesign and construction project, including the 2008 MIPIM Award.

Corporate structureEdit

As part of the 2019 integration of Rockspring, Triuva and Sparinvest under one common brand, Patrizia changed its operating model to reflect the new pan-European structure dividing functions into global, pan-European and local functions.Wolfgang Egger is founder, majority shareholder and CEO of the company. Via his First Capital Partner investment company, he has held more than 51 percent of Patrizia voting rights since 2011.[16] The company's other board members are Karim Bohn, Anne Kavanagh and Klaus Schmitt. The Supervisory Board comprises Theodor Seitz, Alfred Hoschek and Uwe H. Reuter.[1]

Charitable foundationEdit

Wolfgang Egger set up the PATRIZIA Children Foundation (former PATRIZIA KinderHaus Stiftung) as a charitable foundation in 1999. The foundation, although based in Augsburg, is active worldwide. It delivers one specially selected project at a time. The foundation's mission is to provide a quality education for children worldwide, as well as hospital facilities and living space for vulnerable children and young people via the construction of new buildings tailored to their specific needs. In 2019, during its 20th anniversary year, the Foundation was renamed as the PATRIZIA Children Foundation.[17] The PCF has 18 Children Centers worldwide. These have provided education to more than 200,000 children, while more than 20,000 children receive medical treatment annually at the facilities. Further centers are planned.[18]

External linksEdit

ReferencesEdit

  1. ^ a b c PATRIZIA Immobilien AG. "Annual Report 2018" (PDF; 539 KB). Retrieved 2015-08-10.
  2. ^ "Strategy". Retrieved 2015-03-25.
  3. ^ PATRIZIA Immobilien AG (2015-05-07). "Annual Report 2018" (PDF). Archived from the original (PDF; 407 KB) on 2015-09-24. Retrieved 2015-05-07.
  4. ^ Auf Fuggers Spuren. In: Süddeutsche Zeitung, 24. Juli 2013.
  5. ^ Wir haben Staub auf den Schuhen. In: Augsburger Allgemeine, 24. Juli 2013.
  6. ^ Der Auslöser. In: estatements magazin, 24. Juli 2013.
  7. ^ Manager Magazin (1992-09-07). "Patrizia-Aktie startet über Ausgabepreis". Retrieved 2014-06-27.
  8. ^ "Milestones". Retrieved 2013-06-13.
  9. ^ Patrizia Immobilien Pressemitteilung vom 14. Februar 2012
  10. ^ "Patrizia macht Mega-Immobiliendeal perfekt. Handelsblatt vom 8. April 2013". Retrieved 2013-06-13.
  11. ^ "Patrizia Immobilien Pressemitteilung vom 24. April 2013". Archived from the original on 2013-07-21. Retrieved 2013-06-13.
  12. ^ "Patrizia acquires stake in proptech firm Evana". Property Funds World. 2018-10-04. Retrieved 2019-04-24.
  13. ^ "PATRIZIA grows Asian network with acquisition of Japan-based Kenzo Capital Corporation". www.patrizia.ag. Retrieved 2019-04-24.
  14. ^ "PATRIZIA Immobilien AG is now called PATRIZIA AG". www.patrizia.ag. Retrieved 2019-06-11.
  15. ^ Der Spiegel (1992-09-07). "Früher war hier ein Blumenmeer - Wie Augsburger Altbauten mit Hilfe von Asylbewerbern entmietet werden". Spiegel Online. 37. Retrieved 2014-06-27.
  16. ^ "Firmenchef Egger übernimmt Aktienmehrheit. Wirtschaftswoche vom 26. August 2011". Retrieved 2013-06-13.
  17. ^ "Twenty: The magazine of the PATRIZIA Children Foundation" (PDF).
  18. ^ "PATRIZIA Children Foundation". 29 May 2019.

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Coordinates: 48°22′11″N 10°53′36″E / 48.3696°N 10.8933°E / 48.3696; 10.8933