PTA-News: PATRIZIA Immobilien AG: PATRIZIA enters UK PRS with "First Street" purchase in Manchester

5/11/2015, 8:00 AM (Source: pressetext)
Augsburg (pta006/11.05.2015/08:00) - Key points: - 20-acre mixed use site in central Manchester with significant development potential - PATRIZIA builds on European private rental expertise with 500 UK apartments planned - Investment takes PATRIZIA's AUM in the UK to over £1bn

Business news for the stock market

Augsburg (pta006/11.05.2015/08:00) - Key points:
- 20-acre mixed use site in central Manchester with significant development potential
- PATRIZIA builds on European private rental expertise with 500 UK apartments planned
- Investment takes PATRIZIA's AUM in the UK to over £1bn

PATRIZIA Immobilien AG announces the acquisition of the 20-acre "First Street" site in Manchester through its subsidiary PATRIZIA UK. The site is partially developed with an 180,000 sq ft office building, known as "No. 1 First Street". It is a Grade A BREEAM 'Excellent' building with a Weighted Average Lease Term of nine years and is let to high quality occupiers such as Ford, Auto Trader and Jacobs Engineering. The site has capacity for the development of up to 1 million sq ft of office space and approximately 500 new apartments.

PATRIZIA intends to develop and own the apartments specifically as a 'build-to-let' property, marking the Company's maiden investment in the UK Private Rental Sector ('PRS'). This development will form the foundation of PATRIZIA's plans for a dedicated PRS fund, building on the Company's significant European track record in the sector, which already includes the management of 80,000 apartments worth Eur7bn.

Assets recently completed at the site include a 208-bed Melia Innside hotel, nine bar and restaurant units, and 700 carpark spaces. PATRIZIA will develop offices and residential on the remainder of the site over the next 5-7 years. The seller was a local private property company. Completion of the transaction is expected in Q2 2015.

A key cultural, sporting and business hub, Manchester is one of the most sought-after cities in the UK for property investment. There is particular appetite for PRS development, driven by a lack of good quality private rental accommodation, a thriving employment market, and a city council focused on the benefits of regeneration.

James Muir, Managing Director of PATRIZIA UK, commented:
"We have been carefully implementing our strategy of investing in high-growth locations across the UK. With this investment, our property assets under management in the UK now amount to more than a billion pounds. Driven by attractive economic and demographic fundamentals in Manchester, and the growing trend for urbanisation, we are anticipating strong demand for this centrally located, high-quality accommodation which will be tailored to the private rental sector. Together with the new commercial buildings we expect to create an attractive investment opportunity for institutional investors. We see this project as an ideal first investment for our planned PATRIZIA UK PRS Fund."

Wolfgang Egger, CEO of PATRIZIA Immobilien AG, added:
"PATRIZIA Immobilien AG has been active in the residential property market for 30 years. This experience, coupled with the expertise of our local colleagues, offers ideal conditions for sustainably successful investments."

(end)

emitter: PATRIZIA Immobilien AG
address: Fuggerstraße 26, 86150 Augsburg
country: Germany
contact person: PATRIZIA Investor Relations
phone: +49 821 50910-369
e-mail: investor.relations@patrizia.ag
website: www.patrizia.ag

ISIN(s): DE000PAT1AG3 (share)
stock exchanges: regulated market in Frankfurt; free market in Stuttgart, free market in Munich, free market in Hamburg, free market in Dusseldorf, free market in Hannover; open market in Berlin

[ source: http://www.pressetext.com/news/20150511006 ]