German real estate investment manager PATRIZIA has pledged to raise and deploy £1bn into “essential” housing in the UK.
Andy Burnham met with PATRIZIA chief executive Asoka Wöhrmann on a visit to Berlin
The firm confirmed plans to invest £1bn in its new UK Essential Living platform, which will develop up to 4,000 affordable, professionally managed homes for around 10,000 people “over time”.
PATRIZIA said it would expand its housing activity across UK growth cities and regions by working with metro mayors, combined authorities and local partners to identify opportunities that respond to local housing priorities.
It has around £4bn invested in the UK, including housing projects in Cardiff, Birmingham, Reading and Southampton, with more than £100m of investment capacity focused on alternative living and affordable housing as part of a joint venture with Fabrix.
PATRIZIA’s UK investment is part of a €17.5bn (£14.8bn) European Living platform.
The commitment to UK housing follows a meeting between PATRIZIA chief executive Asoka Wöhrmann and Andy Burnham during the prime minister’s visit to Berlin.
Wöhrmann said: “Our meeting with the prime minister reinforced a clear reality: the UK’s demand for affordable housing is also a significant investment opportunity.
“PATRIZIA is already investing in homes across the country and we see considerable potential to do more. By working with metro mayors and local partners, we can help channel long-term institutional capital into the places where housing is needed most.
“Neither public nor private capital can solve this challenge alone, but together we can accelerate delivery and create lasting value for communities across the UK.”
The prime minister’s office added that the investment was an example of how mayoralties can work directly with business to drive development.
To develop this model further, Burnham and Germany’s chancellor Merz held the first UK-Germany Regional Growth Forum, to discuss further opportunities for regional growth in both countries.
Burnham said: “Growth has to reach every part of the country, not just a few places. Germany has shown what strong regions and local leadership can achieve, and we want to learn from that and share our own experience.
“Today is the start of a new partnership between our businesses, regions and our cities, one that will create good jobs and opportunity for people in both countries.”
