PATRIZIA acquires Rockspring Property Investment Managers

Dec 2017

Strategic transaction gives clients increased access to European markets and fund management capabilities.

  • Acquisition combines two strong independent and entrepreneurial businesses
  • Investors benefit from deep market access and a broader range of investment opportunities across Europe
  • Combined assets under management of around EUR 40bn
  • Important step in becoming a global provider of real estate investments in Europe

Augsburg/London, 19 December 2017. PATRIZIA Immobilien AG announces that it has acquired Rockspring Property Investment Managers LLP (‘Rockspring’), providing it with a London-based fund management hub with a focus on discretionary capital for global clients. The acquisition further strengthens PATRIZIA’s global investor base and expands the Group’s network of pan-European offices, resources and capabilities. This transaction, which builds on the Group’s enhanced scale following the recent acquisitions of both TRIUVA and Sparinvest Property Investors (SPI) in the fourth quarter of 2017, increases PATRIZIA’s assets under management (AUM) to approximately EUR 40 billion and strengthens the Company’s position as a leading independent real estate investment manager in Europe.

“Rockspring has an outstanding track record and reputation for European property fund management and client services and is a perfect fit for PATRIZIA in terms of shared vision and culture and its focus on real estate business. This acquisition represents an important milestone for PATRIZIA in achieving our vision to become a global provider of European real estate assets for our clients,” says Wolfgang Egger, Chief Executive Officer of PATRIZIA Immobilien AG.

“The clients of PATRIZIA and Rockspring will benefit from access to a stronger independent platform which will offer broader access to markets and products while PATRIZIA will strengthen its market position significantly in its core European markets. Moreover the global client base is complementary and will allow both sides to profit from long-lasting trusted relationships which have been built on long-term performance. PATRIZIA has been preparing for the acquisitions of Rockspring, TRIUVA and SPI in a careful and strategic way for several months now and I’m delighted that we have been able to finalise each of them this year. It represents a unique strategic opportunity to be able to bring the three businesses into PATRIZIA in one comprehensive integration process,” explains Wolfgang Egger.

Robert Gilchrist, Rockspring’s Chief Executive comments: “Earlier this year a number of factors combined to make us realise it was the right time to start considering our future and prepare Rockspring for the next phase of its growth, a process which we are very pleased to say has resulted in our joining forces with PATRIZIA. The company is a strong fit, both culturally and strategically for Rockspring’s professionals; we share a similar vision, personality and strong entrepreneurial energy that will continue to differentiate us from competitors. Our joint client base will benefit from an expanded range of fund and investment opportunities in Europe, given the strength, range and diversity of skills within the combined businesses and its truly pan-European network of locally based real estate experts. Importantly, this will also ensure an uninterrupted continuation of our current business, managed by the same key people within the Rockspring team.”

Rockspring, like PATRIZIA, has built a long and distinguished track record of pioneering real estate investment and fund management over 30 years. During this time it has established a client base in excess of 120 institutional investors across 20 countries, as well as recognised fund brands including Rockspring TransEuropean, Rockspring PanEuropean and Rockspring Hanover – all of which will remain unaffected and will continue in their current form post-merger. Experts in fund management, its 110-strong team manages real estate investments primarily in the retail, office and industrial sectors out of seven offices in Europe. Rockspring’s AUM is split between the UK and Ireland (35%), Germany (34%) and France (13%), with the remainder (19%) spread throughout the rest of Europe.

Rockspring complements PATRIZIA’s already established fundraising capabilities with 31% of its institutional investors originating in the UK, 26% from the Asia Pacific region, 5% from North America and the remaining 36% from continental Europe whereas the majority of PATRIZIA’s clients originate in Germany. Around 80% of Rockspring’s investors are pension funds, while it also counts insurance companies and other institutional investors amongst its clients.

This is the latest in a series of transactions that PATRIZIA has undertaken, with several acquisitions successfully completed and embedded into the business in recent years. In 2010, PATRIZIA acquired Hamburg-based LB Immo Invest, one of Germany's largest real estate fund providers in the office and retail sectors. In 2013, PATRIZIA acquired London-based investment and asset manager Tamar Capital Group. Most recently, the global fund of funds provider, SPI, and the investment manager, TRIUVA, were acquired in October and November 2017 respectively, providing further breadth to the Company’s investment management capability.

PATRIZIA will publish details of the financial impact of this acquisition at the time of its Full Year Results in the first quarter of 2018. PATRIZIA expects the transaction to close at the end of the first quarter 2018 at the latest and to be earnings accretive in the year of acquisition.

 

Rockspring