Roads, railways and power lines have been considered the cornerstones of modern infrastructure for decades. But this definition no longer suffices, says Asoka Wöhrmann, CEO of real estate investment manager Patrizia. „A modern logistics centre with a solar roof, battery storage, and fibre optic connection is not just a property, but also infrastructure, an energy cell and a data node,“ he explains. Buildings are no longer just spaces to be used, but functionally networked building blocks in a more comprehensively conceived urban structure.

Wöhrmann has been at the helm of Patrizia since August 2023. Previously, he held senior positions at Deutsche Bank, and was CEO of the fund company DWS. In mid-June, the public prosecutor's office dropped an investigation against him on suspicion of greenwashing.

Wöhrmann emphasises that the classic separation of sectors – housing here, energy there, mobility elsewhere – no longer does justice to the reality of complex urban spaces. This convergence is forcing us to abandon old boundaries. Anyone who thinks urban today must think integratively: energy, housing, mobility and digitalisation belong together.

Patrizia has developed a strategic concept out of this: Re-Infra. This involves the resource-efficient modernisation of existing urban structures. Digital infrastructure is taken into account, as are energy efficiency and ESG criteria. The company is consciously investing in combining traditional residential investments with sustainable technologies.

A current project in Spain serves as an example. There, 130 million euros are being invested in affordable housing and highly energy-efficient renovation. „The focus is on CO2 reduction – both in energy consumption and in housing construction itself. This is not marketing, but a real economic lever – and a social necessity,“ explains Wöhrmann.

Patrizia aims to reach 100 billion euros in assets under management by 2030. The company's growth strategy is based on five pillars: The focus is on residential property – in particular affordable, age-appropriate and smart living space, for which demand in Europe is set to rise significantly. At the same time, the company is focusing on value-add strategies, especially in the office segment, which needs to undergo a fundamental realignment. The third pillar is re-infrastructure. Added to this are European infrastructure investments with a focus on energy and mobility, as well as the Advantage Investment Platform for multi-manager strategies.

Nevertheless, many future projects are currently taking place outside Germany – for example, in Spain or Ireland. Wöhrmann sees the reasons for this in the German market environment: „There's no question that Germany is our home market. But we are still too slow, too bureaucratic and not collaborative enough.“ In other countries, there are project guarantees, tax incentives and active participation. In his view, private capital could also be mobilised in this country if clear political framework conditions were created. Public guarantees would be the lever.

The German office property market is also under pressure. „The office is in a state of upheaval, but it is not dead. Of course, many classic core properties are in crisis. But at the same time, there is enormous potential for transformation. We see good opportunities in Frankfurt, London and Paris, for example,“ says Wöhrmann. Many classic core properties – centrally located, expensive, energy-intensive – are currently difficult to sell. At the same time, new potential is emerging through conversion. In London, for example, a former hospital has been converted into a modern, hybrid office building – tailored for flexibility, community, and energy efficiency. „People today want more than just a desk,“ explains Wöhrmann. They ask themselves what added value the office has to offer compared to working from home. If there is no answer, they stay at home.

Patrizia is also active outside Europe. In Asia, many things are being implemented that are still being discussed in Europe. In the Philippines, the company is currently investing around 350 million euros in a solar platform. The market for smart cities and sustainable infrastructure is growing rapidly there. At the same time, Asian investors are specifically seeking ESG-oriented strategies in Europe.

The fact that ESG is increasingly being discussed politically does not change the economic relevance of the issue for Wöhrmann. „Short-term political trends do not change long-term economic realities. ESG is and will remain a value driver,“ he clarifies. Energy-efficient renovations will not only be ecologically necessary in the future, but also economically valuable. „In 20 years, such buildings will be worth their weight in gold. Anyone who ignores this is acting negligently.“