Patron Capital

Patron Capital Partners ("Patron") is a Western European private equity real estate fund with its main investment advisor, Patron Capital Advisers LLP based in London, United Kingdom. Patron Capital Partners represents approximately €3.4 billion^[1] of capital across several funds and related co-investments. It targets investments in European property, corporate operating entities whose value is primarily supported by property assets and distressed debt and credit related businesses.^[2] Patron targets opportunistic investments with an equity size typically in the range of €30m to €90m.^[3]

Patron was established in 1999. Keith M. Breslauer is the founding partner and the managing director of Patron Capital.^[4] As of October 2017 the Patron organisation includes a 74-person in-house team, including a 41-person investment team.^[5]

Patron's main advisory offices are located in the United Kingdom and Luxembourg, with offices and significant partner operations in Germany, Italy, Spain and Poland.^[6]

As of November 2017, Patron has invested in 71 investments involving over 65 million square feet in 16 countries.^[7]

In addition to individual assets, Patron's investee companies include CALA Homes, Punch Taverns, which owns a number of pubs in the UK, Optimum Credit and the Powerleague five-a-side football centres.^[8]

In April 2015, Patron's managing director, Keith Breslauer, was named Property Entrepreneur of the Year at the 2015 Property Awards, organised by trade magazine Property Week.^[9]

In 2016 Patron was named Responsible Investor of the year^[10] at the British Private Equity Awards and in 2017 shortlisted as Social Impact Investor of the year at the Lloyds Bank National Business Awards^[11].

In 2017 Patron was named “Property Fund Manager of the Year” at Property Week’s Property Awards and won the Deal of the Year at Property Week’s RESI Awards. It has also shared the award for “The Best Places to Work in Property”^[12].

In addition to the above awards Patron have been shortlisted across many awards in relation to specific investments, capital raise, fund manager, social investing and for Patron’s significant charity work and contribution^[13].

Funds

Patron represents approximately €3.4 billion of capital across several funds and related co-investments. Investors include universities, institutions, private foundations, and high-net-worth individuals located throughout North America, Europe and Middle East and Asia.^[14]

• Captive Fund (1999), €76m
• Patron Capital L.P. I (2001), $110m (€82m)
• Patron Capital, L.P. II (2005), €303m
• Patron Capital, L.P. III (2007), €868m
• Patron Capital, L.P. IV (2011), €781m + €300m co-investment
• Patron Capital, L.P. V (2016), €806m + €143m co-investment^[15]

Recent investments and exits

Recent transactions include:

• In March 2013, Patron and Legal & General acquired CALA Group Limited, a UK home builder. As of June 2013, CALA’s land bank was over 10,000 plots with a further 4,500 plots within a longer term strategic landbank, with a gross development value in excess of £3.2 billion^[16]
• In July 2013, Patron Capital acquired a 20,000sqm single-tenanted office complex located in Malakoff, Paris^[17]
• In October 2013, a complex of 5 connected commercial real estate assets in central Manchester including the 23,000 spectator capacity Manchester Arena and 14,000 sqm of offices, were sold for £82.1m^[18]
• In January 2014, Patron acquired the Clarion Hotel in the International Financial Services Centre in Dublin^[19]
• In March 2014, Patron’s investment CALA Group acquired developer Banner Homes^[20]
• In May 2014, Paron acquired a €228m loan portfolio from NAMA^[21]
• In May 2014, Patron and Leipziger Stadtbau AG sold two buildings in Leipzig^[22]
• In May 2014, Patron and Pamera acquired Ridlerstrasse 55 in Munich^[23]
• In August 2014, Patron sold Gracewell Healthcare for £153m^[24]
• In September 2014, Patron sold Mollstrasse 1, a freehold office property in Berlin-Mitte to Schroder Property^[25]
• In October 2014, Patron, via its UK forecourt business Motor Fuel Group, completed its acquisition of the entire UK retail business of Murco Petroleum Limited^[26]
• In November 2014, Patron sold a minority stake in its Generator Hostels business to Invesco^[27]
• In March 2015, Patron sold a retail property in Braunschweig, Lower Saxony to Redevco Services Deutschland GmbH^[28]
• In May 2015, Patron acquired Arlington Business Park in Theale, Reading, and The Mint, a 120,000 sq ft office building in Leeds^[29]
• In June 2015, Patron sold Motor Fuel Group to Clayton, Dubilier & Rice^[30]
• In June 2015, Patron Capital and Suprema acquired a 51,000 sqm office complex from GE Real Estate^[31]
• In July 2015, Patron sold its office investment in Malakoff, south of Paris, to Eurosic for €80m^[32]
• In July 2015, Patron Capital acquired a shared equity mortgage portfolio from Galliford Try plc^[33]
• In September 2015, Patron Capital and APAM sold Crossways Point buildings in Dartford to CCLA Investment Management Ltd^[34]
• In 12 October 2015, Patron Capital and RBS sold Jupiter Hotels for £160m^[35]
• In December 2015, Patron acquired 7,000 sqm of existing residential asset blocks in Chamonix (France)^[36]
• In December 2015, Patron together with Development Partner acquired “One Cologne” in Venloer Straße in Cologne^[37]
• In January 2016, Patron Capital and Electra Partners purchased Grainger Retirement Solutions for £325 million^[38]
• In February 2016, Patron sold its stake in the Staybridge Suites hotel in Liverpool to its partner Cycas Hospitality^[39]
• In February 2016, Patron Capital acquired four office buildings (c. 153,000 sq. ft.) at East Point Business Park in Dublin^[40]
• In July 2016, Patron Capital acquired a portfolio of 4 buildings, located across Spain, comprising 163 residential flats, 270 parking spaces and 163 storage rooms from Santander^[41]
• In September 2016, Patron Capital and Fitzpatrick Lifestyle Hotels group sold Spencer Hotel in Dublin to John Malone Partnership^[42]
• In October 2016, Patron Capital sold its office complex Campus West in Munich to Quantum^[43]
• In November 2016, Patron completed the acquisition of 7 mainly office assets (4 office buildings, 2 office floors and 1 retail floor) in Madrid and Barcelona^[44]
• In December 2016, Patron Capital sold its office building Connect on Ridlerstrasse in Munich to a British institutional fund manager^[45]
• In January 2017, Habitat Invest and Patron Capital announced a joint venture to invest in development of new urban renewal projects in Portugal for residential use^[46]
• In March 2017, Patron Capital invested in three shopping centres in Spain together with Eurofund Capital Partners. The assets are located in Cuenca, Alcalá de Guadaira and Alzamora in Alcoy^[47]
• In March 2017, Patron Capital sold Generator Hostels to Queensgate Investments for €450 million^[48]
• In April 2017, Patron Capital sold The Badby Group to Elysium Healthcare^[49]
• In April 2017, Patron Capital acquired additional interests in Retirement Bridge Group to own 100% of the Group^[50]
• In June 2017, Patron Capital together with Paulus Immobilien GmbH purchased a development site in Frankfurt’s Europaviertel^[51]
• In June 2017, Patron Capital and Suprema sold its Berlin office complex investment to Allianz^[52]
• In July 2017, Patron Capital sold its investment in one of the largest Dutch Real Estate platforms, Merin, to DREAM Global^[53]
• In July 2017, Optimum Credit, owned by Patron, completed the first public securitisation of second-charge mortgages by a UK mortgage lender since the credit crisis^[54]
• In August 2017, Patron Capital and Heineken completed £1.8 billion acquisition of Punch Taverns^[55], which owns a number of pubs in the UK, including The Griffin, Whetstone.
• In September 2017, Patron Capital and First Base acquired the former Amex headquarters in Brighton for a mixed-use scheme providing new homes, workspace and convenience stores^[56]
• In October 2017, Patron Capital sold Luxury Family Hotel to the management team and its backers^[57]
• In October 2017, Patron Capital acquired Jacobs Inn Hostel in Dublin^[58]

Charity effort

Giving back to society has always been a key Patron ethos, and as the Patron business has grown and the level of charitable activity has significantly increased, in 2012, the Patron Charitable Initiatives were formalised to organise ongoing work and to promote charitable activity internally, throughout the Patron extensive network of contacts and beyond to the business and wider community. The focus is on three main strands:-

Patron Armed Forces Initiative, demonstrates appreciation for those who help preserve freedom and our lives. Successfully uses the skills expertise and contacts of the business community to support those who need help.

Patron has established a major partnership with the Royal Marines Charity (“RMC) to promote awareness of; and help alleviate the need this charity serves, specifically to support those from the UK’s elite amphibious force who continue to suffer the consequences of injuries, disability and ongoing illness sustained in recent conflicts, examples of actives include:-

• Through their fundraising efforts, own donations and in kind provisions, Patron has contributed in excess of £1.5m to the RMC;

• Dinners and cocktail events arranged and sponsored by Patron, have introduced more than 700 business leaders to military commanders and injured veterans enabling issues to be understood first hand. Most recently Patron provided the primary sponsorship for the Royal Marines Charity London Dinner and worked to promote the event widely though their business network. These efforts resulted in Patron selling 26 of the 45 available tables and introducing c. 250 senior business leaders to the charity through their attendance at the dinner. Further of the total of close to £670,000 proceeds, at least £350,000 were directly attributed to Patron’s team, friends and partners^[59];
• Injured veterans have benefitted from civilian work experience, internships, work taster events and onward employment / business advice arranged or given by Patron and its partners.

In 2017, the Patron – Royal Marine Charity Partnership was highly commended at both the Charity Times and Business Charity Awards, further Patron is currently shortlisted for the positive impact awards.^[60][61][62]

Patron School Initiatives, creating a multiplier effect and directly reaching the areas of society where support is needed most. Projects have particularly helped to break down barriers and promote a real understanding of the issues being faced, illustrations of this work include, Patron:-

• Helping to improve the quality of teaching in UK state schools through partnerships with i) the Princes Teaching Institute, Patron’s Managing Partner, Keith Breslauer chairing this organisation; and ii) Young Enterprise; this work is impacts 5,000+ state school teachers improving teaching for 520,000+ pupils;^[63]
• Directly funding work overseas, building schools in more than 30 villages Nepal, bringing education to 3,500+ children and providing midday meals for schools in rural India;^[64][65]
• Funding higher education scholarships and awards in social enterprise and the arts; and senior Patron staff presenting investment case studies at prestigious business schools.

Patron Foundations Initiative, ensuring Patron continues to be a hugely charitable organisation by working hard to inspire and encourage the whole company and broader network to get involved, giving back is a key Patron ethos, examples include:-

• In celebration of their 18th anniversary year (2017-18) Patron staff across their pan European offices are completing 18 charitable endeavours significantly impact the lives of others, teams have undertaking sponsored physical challenges, including completing a Royal Marine endurance course, and are establishing education related and other projects;
• Patron has established the “Greatness Lectures” a regular series of informal talks for Patron’s staff, friends, family and business network to hear from inspirational individuals who demonstrate the greatness of the human spirit, both in its ability to overcome great adversity and to achieve great feats, over early evening cocktails.^{[66][67][68][69][70]}

References

External links

• Patron Capital
• @patroncapital at Twitter