Housing is priority for Patrizia’s new €500m impact fund

Patrizia Sustainable Communities’ first project, in Dublin.

Patrizia Global Partners has launched a new fund dedicated to impact investing which is intended to channel about €500 million into affordable housing and social infrastructure.

At first close which was at the end of 2021, two Danish pension funds, AP Pension and PKA, provided €125 million in equity to coincide with the closing of the first seed investment, a project in south-west Dublin being undertaken with asset management partner Ardstone.

The new fund’s aim is to create ‘sustainable communities’ by providing thousands of affordable homes, including social housing. It will also provide social infrastructure for underserved communities in about 25 European locations. This will include public facilities such as libraries, day care centres and healthcare facilities.

The firm said that the Patrizia Sustainable Communities I SCSp-RAIF is classified as an impact investment fund because it provides homes for key workers who cannot afford to live close to their workplaces and for people on the social housing waiting list. The Dublin project will provide 290 social and affordable apartments.

Fund also aims to promote social inclusion and connectivity

The fund will also promote social inclusion, boost connectivity and reduce the carbon footprint in the communities in which it invests.

“As a Fund, Patrizia Sustainable Communities is not only closely aligned to SFDR – Article 9 in terms of its sustainable investment goals, but in terms of Article 9’s robust disclosure requirements,” said Mathieu Elshout, the fund chairman and Patrizia AG’s head of sustainability and impact investing.

The fund, which the Copenhagen-based Patrizia Global Partners said is also fully aligned with the UN SDGs, provides a dual return to investors. This consists of a financial risk-adjusted return and measurable positive social and environmental outcomes according to Elshout.

“We are in a good dialogue with a further group of international investors to follow the example of AP Pension and PKA and join our equity raising initiative which has a target of around €500 million in capital so we can further increase our sustainable impact across European cities.” Marleen Bikker-Bekkers, fund manager of Patrizia Sustainable Communities.