Best-performing balanced fund in the MSCI PEPFI index, based on three-year NAV-level returns
45-year-old, open-ended fund continues to deliver outperformance
PATRIZIA fund management team praises investors, many of whom are long-term holders
Augsburg, 20 November 2018. PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, has won the MSCI award for 'Best Performing Balanced Fund in the PEPFI Index' for The PanEuropean Property Limited Partnership ('PanEuropean'), which has recorded the highest three-year NAV-level performance versus its peers. The fund, which was launched in 1973 and became part of PATRIZIA following the integration with Rockspring in 2018, targets net returns of 6%, but has significantly outperformed by delivering a three-year annualised return net to institutional investors of 11.0% (as at 30 June 2018).
The open-ended fund has been active across multiple market cycles, countries and sectors, and is backed by an experienced fund management team who have worked together for over 12 years. The stability of the fund is underscored by its institutional investors, who continue to show long-term commitment, with the majority now invested for over 10 years.
PanEuropean's successes lie in acquiring and managing commercial office, logistics and retail property located in major cities and large conurbations across Western Europe and Scandinavia, and its dynamic core strategy is characterised by a strong income return alongside capital growth via low-risk asset management and timely sales.
Recent examples include 15-year fixed lease extensions for each of the three assets of a 50,000 sq m Swiss retail portfolio, which had been held in the fund for over 10 years, resulting in a 30%+ uplift in value, crystallised by its sale in 2016. Another example is a 13-year lease extension for the anchor tenant of a prime office tower in Amsterdam's CBD, now valued at 20% above the price for which it was acquired in 2017.
Flavio Casero, PanEuropean Fund Director at PATRIZIA, commented: 'The whole team is delighted to be recognised by MSCI for the performance of our PanEuropean fund, now celebrating its 45th year in the market. We want to take this opportunity to thank all of our institutional investors, some of whom have stood by us for over 30 years. It is their trust that has allowed this fund to evolve throughout multiple cycles into the best-in-class product it is today, and we are proud to have delivered these returns to them.
'The fund's strong performance was - and continues to be - driven by its dynamic core strategy, with specific investment themes and the execution of long-term asset management initiatives producing robust quarterly dividends and steady capital appreciation.'
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 30 years. PATRIZIA's activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages almost EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
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