Patrizia Immobilien AG (XTER:P1Z) is one such example and was introduced to the portfolio in the third quarter. Patrizia is transforming itself from a pure residential property owner in Germany to a Pan European real-estate manager. This transition will be mostly complete by 2016, resulting in a business model that is asset-light with largely recurring revenues. This change improves the quality, returns and cash flows of the company’s business. Patrizia is also operating a relatively unique business model, especially among publicly traded companies, and helps solve a problem for pension-fund clients in search of yield.
From Wasatch International Growth (Trades, Portfolio) Fund Q4 2014 Commentary.
