Hong Kong insurer mandates Patrizia to lend US$50m
A Hong Kong insurer has awarded Augsburg-based Patrizia a mandate to invest US$50 million in real estate debt.
The Patrizia Global Real Estate Debt mandate is now operational and aims to invest the initial $50 million of capital in up to four investments across the European and Asia Pacific regions.
The investor is planning to follow the initial investment with further capital.
Annual net returns of over 8% will be targeted, Patrizia said in a statement, also pointing to its track record in property debt investment through Patrizia Global Partners which has more than US$2 billion of indirect exposure in real estate debt investments across Asia, the US and Europe with over 130 loans made.
“In a world of low interest rates, long-term investors such as insurers and pension funds are increasingly looking at alternative strategies in private markets to secure higher returns,” said Patrizia Global Partners head of Asia, Marko Multas, who is fund manager of the new product. “That is why there is currently a growing appetite for private debt and such investment products. We believe that real estate debt will offer attractive opportunities for new and existing clients.
“Many traditional lenders, like banks, have retreated from our target markets, opening up an opportunity for us to provide our clients with access to very attractive yields and diversification.”
