London continues to attract German institutional property investors
EUROPE - German institutional investors continue to demonstrate appetite for London real estate: Patrizia has announced its intention to open an office in the city, while RREEF Real Estate and Invesco Real Estate have made major acquisitions on behalf of German clients.
Klaus Schmitt, operating officer at Patrizia, revealed the intention to open a London office during this week's results announcement for the German real estate fund manager.
Schmitt said a London office would "allow us to be closer to the properties in the UK, as well as get better access to UK investors".
The company, which seeks to invest globally on behalf of mainly Germany-based investors, already opened an office in Stockholm last year and might establish a presence in Denmark as well.
It is aiming to increase its assets under management from €7bn to more than €10bn by 2015.
The revelation comes soon after a £124m (€148m) retail acquisition by Invesco Real Estate on behalf of German pension fund Bayerische Versorgungskammer (BVK).
The building at 107 Cheapside is opposite new shopping centre development One New Change in London's financial district and was sold by Menolly Investments.
Meanwhile, RREEF has acquired Park House, an office and retail asset in Finsbury Circus, for approximately £150m, on behalf of one of its open-ended funds.
The building was redeveloped in 2008 and is home to Bloomberg, Cisco Systems, City Index and Brown Brothers Harriman.
The seller was UK-based real estate fund manager PRUPIM.