LONDON—Patrizia Immobilien AG has made its first acquisitions in the UK. The deals come on the heels of the completion of its acquisition of Tamar Capital Group, the London-based real estate investment and asset management company.

Both assets have been acquired in a joint venture between Patrizia and funds or accounts managed by Oaktree Capital Management, L.P.

Edmund House, Edmund Street, Birmingham was acquired from clients of Aberdeen Asset Management for $12.5 million (£8M), reflecting a net initial yield of 10%. Located in the prime office pitch in Birmingham city centre, the building provides 80,000 sqare foot of accommodation of which approximately 30% is currently vacant.  Tenants in occupation include Gresham Trust, Lloyds Bank and Eversheds.

Patrizia and Oaktree plan to refurbish and re-launch the property into a market that is beginning to experience a shortage of quality accommodation in the core area. Patrizia and Oaktree were advised by CBRE and the vendor by GBR Phoenix Beard.

In the second transaction, Patrizia  and Oaktree have acquired 3, The Arena, Bracknell from SWIP for $10.9 million (£7.03M), reflecting a purchase yield of 14%. The 44,000 square foot office building is located adjacent to Arlington Business Park, the prime office location in Bracknell. The property is let for a further 5.5 years to JDA and offers a good income return with a strong residual value.

 Patrizia and Oaktree were advised by Jones Lang LaSalle and the vendor by Capita Symonds.

“We have been actively monitoring the UK market for some time and, following the recent expansion of our UK business through the acquisition of Tamar, believe we have the right team, led by Rob Brook, and platform in place to identify attractive segments of the market,” said James Muir, managing director of Patrizia's UK business. At present, UK regional markets present an opportunity, on a selective basis, to acquire attractive assets at an opportune time in the market with the prospect to add value through asset management.”

Both of the recent property acquisitions were completed with joint venture partner Oaktree. 

“We are excited about these recent UK acquisitions, which reflect part of our UK real estate strategy of acquiring direct real estate assets with value-add potential, acquiring sub and non-performing loans collateralized by commercial real estate and working with borrowers to recapitalize capital structures,” said Snelgrove of Oaktree. “Both of the assets acquired offer opportunities to create value through proactive asset management, and we look forward to working closely with Rob Brook and his team to deliver on the business plan.”

With more than 600 employees in over ten countries, Patrizia Immobilien AG has been active on the real estate market as both an investor and service provider for nearly 30 years. Patrizia's range includes the purchase, management, value increase and sale of residential and commercial real estate. As a recognized business partner of large institutional investors, the comany operates in Germany and other countries and covers the entire value chain in the real estate industry. At present, the Company manages real estate assets worth EUR 10 billion. 90% of the total real estate assets are managed on behalf of third parties, primarily as a holder of a real estate portfolio for insurance companies, pension fund institutions, sovereign wealth funds and savings banks.

Oaktree is a leader among global investment managers specializing in alternative investments, with $77.1 billion in assets under management as of December 31, 2012. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 700 employees and offices in 13 cities worldwide.