German asset manager Patrizia Immobilien has received a mandate from Germany's largest pension scheme group Bayerische Versorgungskammer (BVK) to invest over €400 mln on residential real estate across Europe.
Under the agreement, Patrizia will be setting up a pan-European portfolio of flats for a BVK fund and will be responsible for the real estate as investment manager.
'We are pleased that one of Germany's biggest institutional investors would now like to leverage our competence and skill as a European real estate investment company with local experts in all relevant real estate markets for its investment strategy in the form of an individual mandate as well,' said Jochen Reith, group head of institutional clients at Patrizia.
The mandate will focus on investments both in existing residential real estate as well as project development involving new construction, especially in the Netherlands and the Nordic Region.
Patrizia said that it has already carried out its first acquisition for the new mandate. Back in March, the group bought a portfolio of 1,275 flats across the Netherlands from Holland Immo Group for €150 mln.
Bayerische Versorgungskammer is the biggest public-law pension fund in Germany at present, managing the business of 12 professional and local community old-age pension facilities with 2.1 million insured persons and pensioners. It manages €66 bn of capital.
Earlier this month BVK also awarded a €400 mln residential mandate to Scandinavian asset manager CapMan Real Estate.
Under the broad mandate, CapMan will source, advise on and execute transactions as well as manage the assets on behalf of BVK in Sweden, Denmark, Finland and Norway. Earlier in 2016 BVK also hired US investor Hines to build up a €1.3 bn retail investment portfolio focusing on prime high street retail assets across Europe.