Berlin Backing For Burnham Building

Patrizia will raise and deploy £1 billion for housing across the UK, following a Berlin meeting between its CEO, Asoka Wöhrmann and Prime Minister Andy Burnham.

Patrizia is a German investment firm. On 8 October, at the British Embassy in Berlin, it confirmed plans to add the £1bn to its new UK Essential Living Platform, which will deliver up to 4,000 affordable homes by working directly with mayors and local partners across the UK.

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. 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.”

Patrizia has already invested around £4bn in the UK.

Regional growth

To develop this model further, the Prime Minister, along with Germany’s Chancellor Merz, brought together British and German businesses at the first UK-Germany Regional Growth Forum, to discuss further opportunities for regional growth in both countries.  Andy 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.”

Show me the money

The approach is designed to connect housing opportunities identified by mayoral authorities with long-term capital, potentially including UK pension investment. Mayors can shape local housing priorities and deploy funding, while Local Government Pension Scheme funds and their investment pools can consider suitable projects as part of their investment strategies. Any pension investment would be subject to their own assessment and decisions.

The venture’s first development, Walworth Corners in Elephant and Castle, has secured construction finance and appointed a contractor. It will bring new homes and student accommodation to a brownfield site, alongside community facilities and public space. Patrizia has also invested in housing projects in Cardiff, Birmingham, Reading and Southampton.

The Mayor of London, Sadiq Khan, said: “Patrizia’s investment in Elephant and Castle is already delivering much-needed new homes. They want to increase their presence here in the capital. By working with international investors, government and regional leaders, we are boosting the delivery of new homes, many of which will be affordable.”

Liverpool

Steve Rotheram, Mayor of the Liverpool City Region, said: “Liverpool City Region has huge ambitions when it comes to housing and no shortage of opportunities to invest. We’ve got the sites, the plans and the appetite to build. What we need are partners prepared to take the long view and help us turn that potential into spades in the ground.”

West Midlands

Richard Parker, Mayor of the West Midlands, said: “Tackling the housing crisis has been a top priority for me since day one because too many people are waiting too long for a safe, warm home. I contracted a record 7,237 new homes over the last year including 2,452 that are affordable or for social rent, yet to truly tackle this issue requires strong, trusted partnerships with private developers. Patrizia, through its existing investments in Edgbaston and Birmingham city centre, has shown a real commitment to our region and a welcome ambition to expand that collaborative model across the UK.”

West Yorkshire

Tracy Brabin, Mayor of West Yorkshire, said: “We have bold ambitions to deliver the new homes that people across West Yorkshire need which is why I welcome this commitment to invest in our region.”

Picture: CGI image of the planned development in Elephant & Castle.

www.patrizia.ag/en