Partners Group, the global private markets investment manager, has this quarter agreed to invest in two real estate portfolios in Europe on behalf of its clients, comprising eleven residential properties in Italy and eleven office assets in Poland. The properties have a gross asset value of EUR 500 million and a combined leasable area of 170,000 square meters.
The eleven residential properties in Italy are spread across major urban centers; the majority are located within the center of Milan, with the balance in Rome and Turin. The leasable area of 70,000 square meters will be managed by Italian operating partner InvestiRE SGR, part of Banca Finnat Group, which will co-invest alongside Partners Group. The Polish office portfolio comprises eleven class-A office properties in Kraków and Wrocław, which are currently made up of 100,000 square meters of standing assets, with around 25,000 additional square meters under construction. The assets will be managed by Polish operating partner REINO Capital.
Partners Group and its operating partners will make significant operational enhancements at assets in both portfolios. In Italy, the residential value creation plan includes unit-by-unit renovations, a full refurbishment of common areas, and selective re-development projects. At the office assets in Poland, the portfolio is comprised of cash-flowing assets let to good-quality tenants, as well as two partially pre-let development projects which provide significant value-add potential. Value creation efforts across both portfolios will reflect Partners Group’s focus on sustainability, community and wellness through amenities, such as gym facilities and co-working spaces, as well as energy efficiency.
Marco Denari, Member of Management, Private Real Estate Europe, Partners Group, states: “Milanese city-center locations, as well as exposure to blue-chip office tenants in Poland, provide significant downside protection and counter-cyclical features, which are in line with Partners Group’s relative value investment approach. In addition, the proprietary sourcing of both investments is a testament to our local presence and ability to provide tailored investment solutions across Europe. We are excited to begin working on the transformational value creation plans our asset management team has identified for these promising assets.”
Mike Bryant, Partner, Co-Head Private Real Estate, Partners Group, adds: “These two significant investments are representative of Partners Group’s core strategy of creating value across good quality, cash-flowing assets, with upside potential through medium-term, high-visibility asset management initiatives. We continue to find these locations attractive for opportunities in residential and office, and look forward to working with our local operating partners on enhancing the assets both from an operational and sustainability standpoint.”
