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Patrizia seeks £75m to upgrade UK core fund assets

23rd March 2022

Patrizia is in the market to raise £75 million ($99 million) for its UK open ended core fund, with the proceeds destined for ESG improvements.

The German real estate investment manager is raising capital for the £500 million Patrizia Hanover Property Unit Trust to support a capital expenditure programme across the portfolio, which has a strategic aim to be “the most sustainable fund within its UK peer group”.

Forthcoming initiatives include the third phase of a solar farm, which will provide up to 10 MW of energy; the development of around 95,000 sq ft of BREEAM Excellent-rated logistics units and the refurbishment and decarbonisation of a major office site for the British National Health Service.

The solar farm will be developed at Westcott Venture Park in Buckinghamshire. Once the third phase is completed it will provide energy for the park’s tenant and make the asset carbon negative overall.

At Mole Business Park (pictured above) Patrizia is refurbishing and extending a 55,000 sq ft office space, as part of a new 20-year lease agreement with the existing tenant, Surrey & Borders Partnership NHS Foundation Trust.

The refurbishment will use more sustainable materials and improving energy efficiency, with investments in rooftop photovoltaic panels, LED lighting and daylight controls and high performance glazing, which is expected to reduce the building’s energy use intensity by around 60%. 

The Hanover fund has already achieved net zero carbon with regard to Scope 1 and 2 emissions.

Mischa Davis, fund director of Hanover, said: “This fund raise will enable us to undertake a comprehensive asset management programme as we aim to unlock significant  upside potential, create maximum value for our investors and, importantly, ensure that our assets are  future-proofed for the coming years.”

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