Middle East investors show interest in European real estate as Patron Capital raises over $920 million for Fund VII

Patron Capital Closes Seventh Flagship Fund, Raises Over $920 Million

LONDON– Patron Capital, a leading pan-European institutional investor specializing in property-backed investments, has successfully closed its seventh flagship fund, raising over $920 million. This includes more than $215 million of Patron discretionary co-investment capital for larger opportunities.

The majority of the capital raised for Fund VII came from Patron’s existing investor base and relationships, with a significant portion coming from Middle East investors seeking value-add investment opportunities in European real estate. Approximately 5% of the capital raised for Fund VII also came from Middle East investors, including pension funds, sovereign wealth funds, endowments, foundations, and family offices.

Fund VII will follow the same investment strategy as Patron’s previous funds, focusing on distressed and undervalued investments in Western Europe. The fund will target property-backed corporate investments and individual properties across various sectors. With deal sizes ranging from $30 to $85 million in equity, Patron can pursue off-market opportunities that may not be accessible to other investors. Additionally, the fund can leverage its co-investment capital for larger opportunities.

This latest fund is the seventh in Patron’s flagship series, aiming for returns of 17% to 20% gross IRR and a 1.6x-2.0x gross equity multiple over a four-to-five-year investment horizon. However, Patron has a track record of exceeding these targets, showcasing its ability to add value through asset management and strategic acquisitions and disposals.

Patron has already begun deploying capital from Fund VII, with approximately 10% of the fund’s investment capacity already invested in various asset classes across Western Europe. The firm is projecting an 18% return on these initial investments.

Keith Breslauer, Managing Director and founder of Patron Capital, expressed confidence in the current real estate opportunity set, emphasizing the firm’s ability to raise capital and execute on value-add and opportunistic investments in Europe. Breslauer highlighted the strong endorsement from existing investors, particularly those in the Middle East, as a testament to Patron’s reputation as a trusted manager in the region.

With over 25 years of experience, Patron Capital has raised seven flagship funds and multiple co-investment pools, with 10% of equity coming from Middle East investors. The firm has completed over 200 transactions across 106 investments in 17 countries, totaling over 9 million square meters.

Investors in Patron Capital funds include sovereign wealth funds, universities, institutions, foundations, and high net worth individuals from North America, Europe, Asia, and the Middle East. The firm’s main investment adviser, Patron Capital Advisers LLP, is based in London, with additional offices in Barcelona and Luxembourg.

For more information about Patron Capital, visit www.patroncapital.com.

Source: AETOSWire

Contacts:
Henry Columbine
Polly Warrack
James Carnegie
Laurence Hill
SEC Newgate
Email: patron@secnewgate.co.uk

This news story highlights Patron Capital’s successful fundraising efforts and its commitment to pursuing value-add opportunities in European real estate. With a strong track record and a diverse investor base, Patron Capital is well-positioned to capitalize on the current market conditions and deliver attractive returns for its investors.