PATRIZIA continues to grow consistently

11/11/2014  | Company

PATRIZIA Immobilien AG continued growing consistently as a leading European real estate investment company in the third quarter of the 2014 financial year. The focus was on the acceleration of European expansion, as a result of which assets under management by PATRIZIA have risen to around EUR 13.5 billion as at 30 September 2014 (31 December 2013: EUR 11.8 billion). "By the end of the year, we will with great certainty have exceeded our goal of increasing real estate assets under management by EUR 2 billion over the year as a whole," said Wolfgang Egger, CEO of PATRIZIA Immobilien AG.

Among other things, business activities in France, the Netherlands and Finland were further expanded in a decisive move. For example, in the Netherlands PATRIZIA signed a purchase agreement for around 5,500 residential units for a co-investment. At EUR 578 million, this is the biggest deal on the real estate market there. In Great Britain, PATRIZIA acquired three more business parks and thus became one of the country's largest business park operators. PATRIZIA therefore manages real estate assets outside Germany worth around EUR 4 billion. Further international investments are currently being considered. "But we have also expanded our foundation for further growth in Germany," said Egger. "By founding PATRIZIA GrundInvest GmbH, we have set a course for an expansion of the business model. From 2015, PATRIZIA will also offer real estate funds for private investors."

Operating earnings before taxes, the Group's key management parameter, increased in the first nine months of this year by 41.1% on the same period of the previous year to EUR 26.3 million. In the third quarter alone, they grew from EUR 521,000 in the same period of the previous year to nearly EUR 4.9 million. "Normally, half of our annual earnings is generated in the fourth quarter. Therefore, we can with good conscience reconfirm our forecast of achieving operating earnings of at least EUR 50 million in 2014," said Arwed Fischer, CFO of PATRIZIA Immobilien AG. In addition, the notarisations already carried out for residential property resales give a good overview of the sales proceeds still outstanding.

At the end of the year, PATRIZIA's own portfolio will comprise only around 1,000 units, which are mostly to be sold next year. "We have therefore implemented our strategy of systematically reducing our own portfolio and reinvesting the proceeds in the development of the company much faster than expected," said Egger. "We will use the freed-up liquidity to grow successfully throughout Europe together with our customers via our network of subsidiaries in the various real estate markets and asset classes."
The complete report for the third quarter of 2014 can be found at www.patrizia.ag.

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