Germany’s Patrizia takes AUM over €30bn with purchase of Triuva fund manager

Wolfgang Egger © D.R.

German listed Patrizia has acquired investment manager Triuva, the former real estate institutional fund arm of IVG, boosting total managed assets by some €9bn to over €30bn. Reporting nine months, Patrizia also raised 2017 operating guidance to over €75m.

The Frankfurt-based Triuva manages real estate assets of around €9.8bn across around 40 funds on behalf of more than 80 institutional investors, and employs some 200 employees across 15 European locations. Its investment focus has been commercial real estate in the office, retail and logistics sectors as well as infrastructure.

This acquisition is a perfect fit for our growth strategy, ” Patrizia Immobilien CEO Wolfgang Egger said in a release. “It will strengthen our European network, expand our market presence and broaden the range of products and services for our clients. We will also consolidate our position as the leading independent real estate investment manager in Europe.” No price was given for the transaction.

Patrizia said the acquisition boosts its assets under management by around 50% to over €30bn, placing it firmly among the top 10 European real estate investment managers. Furthermore, the purchase will broaden Patrizia’s product range, enabling institutional and private investors to access new markets, asset classes and risk profiles with their investments.

This acquisition increases the stability of Patrizia’s business model through greater diversification and by ensuring an even greater share of our revenue comes from recurring asset management fees,” added Egger. “We also offer Triuva and its clients a stable ownership structure and new opportunities. With our sound capital base, we will continue with our successful strategy and pursue attractive opportunities which benefit our investors.

Separately, Patrizia said nine month operating income rose 6.1% yy to €46.6m, and it now expects to deliver slightly above €75m for the full year, up from the previous guidance of between €60-75m. “In 2017 our strong investment track record delivers a high volume of performance fees leading to an increase in our full-year guidance” said CFO Karim Bohn in a statement. Total service fee income, including recurring revenues generated from management, transaction and performance fees in particular, increased by 5.2% yy to €128.8m.

Prior to the Triuva deal AUM rose by €1.9bn in the first nine 2017 months to €20.5bn. With the inclusion of Sparinvest Property Investors (SPI), the Copenhagen-based fund-of-funds manager acquired in October, Patrizia expected a €3bn rise to €21.6bn. It said liquidity remained strong at around €740m in cash and equivalents, “to take advantage of future opportunities.”

BIE COMMENT : The deal brings to a close a long chapter for Triuva, which is the renamed institutional fund manager of the former IVG listed property group that in 2013 sought solvency protection and was bailed out by a group of mostly Anglo-Saxon opportunity funds which had bought its debt at knock-down prices. In 2016 they brought in former CPPIB CEO Werner Hoberg to head Triuva after the exit of top execs Steffen Ricken and Oliver Zimper to run the activities in Germany of the New York-based RFR group. Hoberg extended the opportunistic ‘slimming down’ of Triuva assets which at one time totalled over €11bn.

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