Patrizia German residential fund generates 7%, European fund nears completion

Augsburg-based listed residential housing group Patrizia reported a rise in returns on its specialised real estate fund Patrizia German Residential Fund I, launched in 2007, to 7% last year, outpacing the 6.3% it achieved in its first shortened fiscal year of operation. "We are extremely happy with this result," said Michael Vogt, director of fund management arm Patrizia Immobilien. The returns are based on guidelines laid down by the German investment fund association BVI. "These returns can only be achieved with residential areas with negligible vacancy rates and good rentability," he said. Target is investment volume of e400m in the next two years, against e80m invested to date. Patrizia is also completing a housing fund focused on Europe, Euro City Residential Fund I.