PATRIZIA-Mitsui JV eyes up to $1b for new APAC infrastructure fund

PATRIZIA-Mitsui JV eyes up to $1b for new APAC infrastructure fund

Wolfgang Egger, founder and CEO of PATRIZIA

PATRIZIA, a Germany-headquartered investment manager, has partnered with one of Japan’s largest trading companies, Mitsui & Co, to set up an Asia Pacific-focused sustainable infrastructure fund with a $110 million equity investment in the first close. 

The APAC Sustainable Infrastructure Fund (A-SIF) will deploy in mid-market brownfield infrastructure in developed markets across the region, including Singapore, South Korea, Japan, Taiwan, Australia, and New Zealand, according to a statement on Wednesday.

Aiming to raise anywhere between $500 million and $1 billion, the fund will dedicate up to 50% of its portfolio to the energy sector, which includes solar farms, wind farms, and battery storage. 

It will allocate 20% of its investment to digital assets such as data centres and sea cables, while the same portion will be reserved for social infrastructure, such as healthcare and education facilities. The remaining 10% will be invested in mobility, such as EV charging stations. 

PATRIZIA and Mitsui will not only focus on delivering strong returns but also achieving positive sustainable outcomes that align with the United Nations’ Sustainable Development Goals (UN-SDGs). The partners are injecting capital into the fund alongside the government-owned Development Bank of Japan as the anchor investor. 

“Our proven long-term partnership with Mitsui over the last 15 years demonstrates that we remain a strong and trusted partner to our clients in these times of continued uncertainty. With the launch of A-SIF, we are pleased to offer investors access to one of Asia-Pacific’s largest active strategies dedicated to sustainable, mid-market infrastructure investing,” said Wolfgang Egger, founder and CEO of PATRIZIA.

“For PATRIZIA, APAC is a core pillar of our mid-term growth strategy, so we are very excited to again join forces with our partners at Mitsui to drive the growth of our real assets footprint in the region and help us achieve this ambition.” 

A-SIF, the second fund under the PATRIZIA-Mitsui joint venture, is an extension of its 15-year partnership in Asian infrastructure following the establishment of the Emerging Market Infrastructure Fund in 2008. 

Last November, PATRIZIA launched a 1-billion-euro acquisition vehicle for core-plus and value-add opportunities in Japan’s multifamily sector.

The real estate investor now manages over 57 billion euros worth of assets globally for its clients, of which 10 billion euros is for institutional investors in the region. 

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