South: Patrizia exceeds profit forecast as management fee income rises

Patrizia, which owns Chineham Park, Basingstoke, and Winnersh Triangle, near Reading, exceeded its profit forecast for the 2016 financial year significantly following a strong performance in the fourth quarter.

The three months until December 31, 2016, were characterised by increased transaction volumes and the realisation of higher performance fees from the management of real-estate investments.

Following a total operating income of €155 million for the 2015 financial year, the total operating income for 2016 is expected to rise to €283m, exceeding the most recent forecast of at least €265m.

A major contributor to the strong results was the increase in fee income for the management of property assets for Patrizia investors. Total management fees increased by 14% to €189m in 2016 from €165m in 2015.

In 2016, Patrizia was able to realise and close real-estate transactions totalling €5.1 billion. Across Europe, residential and commercial real estate worth more than €3.2b was acquired for the various investment vehicles managed by Patrizia, while the sale of properties generated €1.9b. Assets under management increased from €16.6b to €18.6b by year end 2016.