Patron Capital Partners, a private-equity firm that invests in European real estate, plans to spend more than 1 billion euros ($1.3 billion) on German properties over the next two years.
“We have a strong appetite for real estate in Germany and are dedicated to spending considerable amounts of our investment capital and internal capacities on opportunities in this region,” Keith Breslauer, Patron founder and managing director, said in the statement.
Patron already manages about 560,000 square meters (6 million square feet) of land and buildings in Germany, it said. The assets include office buildings in Berlin’s Mitte district, railway buildings and land throughout Germany and Generator brand youth hostels, according to its website. Germany is the least risky market for buyers of stores, warehouses and office buildings because its economy has continued to grow despite the recession in Europe, Aviva Investors said in April.
London-based Patron raised about 1 billion euros through September to buy distressed real estate and related companies across Europe through its Patron’s Fund IV, the company said. About half of that money has been invested.
Investors bought about 6.7 billion euros of income-producing property in Germany in the first quarter, a 21 percent increase from last year, according to broker Savills Plc.
Patron said it hired former Pramerica Real Estate Investors’ European chief investment officer Georg von Hammerstein to help it find investments in Germany and German speaking countries including Austria and Switzerland.