PATRIZIA, a leading partner for global real assets, has gone to market to raise up to GBP 75 million from new and existing investors on behalf of its flagship UK Core balanced fund, PATRIZIA Hanover Property Unit Trust (“Hanover” or the “Fund”). The capital will finance a capex programme delivering significant ESG-related improvements across the portfolio, supporting its strategic aim of being the most sustainable fund within its UK peer group.

Established in 1967, Hanover is one of the UK’s oldest open-ended property funds with over GBP 500 million AUM and an average distribution yield of 5% p.a. for the past 10 years. Its flexible strategy and evolving portfolio mix has ensured it has consistently outperformed market cycles, and through active asset management delivered sustainable income and recurring capital growth for investors. 

The Fund’s ESG policy includes a commitment to achieving significant cuts in greenhouse gases across the portfolio, which has already resulted in Hanover achieving Net Zero Carbon (Scope 1&2). Last year, the Fund was awarded the AREF Investors’ Award for Outstanding Achievement in its approach to achieving net zero carbon.

The capital raised from investors will be allocated across several major projects at some of the Fund’s flagship assets, including:

Westcott Venture Park, Aylesbury

At Westcott Venture Park, the largest business park in Buckinghamshire, PATRIZIA will transform the asset to a carbon negative industrial park through the delivery of phase three of the onsite solar farm. Once completed, the solar farm will span 35 acres, with phase three alone providing an additional 7.65 megawatts of capacity. The energy generated will power the park’s 80+ tenants, some of which are world-leaders in the space satellite technology and engineering sectors.

Hanover recently invested GBP 3.7 million to expand the park with the construction of a 27,000 sq ft high tech building, which will be home to a new In-Orbit Space Manufacturing Facility and a Healthy Living Laboratory.

Mole Business Park, Leatherhead

PATRIZIA is currently undertaking a comprehensive back-to-frame refurbishment and extension of a c. 55,000 sq ft office space within Mole Business Park, as part of a new 20-year lease agreement with the existing tenant, Surrey & Borders Partnership NHS Foundation Trust.

The focus will be on decarbonising the asset by using more sustainable materials and improving its energy efficiency, while creating a best-in-class office space. Key investments will see the installation of rooftop photovoltaic panels; LED lighting and daylight controls; and high performance glazing, which is expected to reduce the building’s energy use intensity by around 60%, significantly below the levels set out in the London Energy Transformation Initiative (LETI).

Thorp Arch, Yorkshire

PATRIZIA will fund the development of a new garden centre and high ropes adventure park at Thorp Arch Estate, which comprises over 2,000,000 sq ft of commercial space and is home to more than 200 tenants.

The investment will create a new leisure and retail destination in the region and feature award-wining local garden centre group, TONG, as the flagship tenant. The site will also include 70 EV charging points, a BREEAM Excellent tenant fit-out and the repositioning will be delivered through net zero construction methods.

PATRIZIA also plans to develop nine new industrial and logistics units at Thorp Arch to meet local demand, totalling c. 95,000 sq ft. The units will be built to BREEAM Excellent specification and using net zero construction methods. The delivery of these units is a continuation of PATRIZIA’s longstanding programme to modernise the site. 

Mischa Davis, Fund Director of Hanover at PATRIZIA, commented: “This fund raise will enable us to undertake a comprehensive asset management programme as we aim to unlock significant  upside potential, create maximum value for our investors and, importantly, ensure that our assets are  future-proofed for the coming years. In line with Hanover’s ESG ambitions, the majority of these measures will improve the sustainability performance of our assets, to maintain the Fund’s Net Zero position and ensure Hanover is among the most sustainable funds in its peer group. This ongoing strategy is designed to further enhance an already high quality, diversified portfolio that continues to consistently outperform the market and delivers robust returns to investors over the long term.”