Partners Group Tests Parmaco Exit as New Housing Fund Takes Shape

Partners Group reviews a possible EUR 1.5B sale of modular builder Parmaco and launches a EUR 1B European residential strategy with Empira.

Partners Group is weighing a sale of Finnish modular construction specialist Parmaco that could value the business at roughly EUR 1.5 billion, according to a Bloomberg report, with Bank of America mandated to run the process. Talks remain at an early stage, and the Swiss asset manager could still opt to keep the company rather than sell.

The potential disposal would rank among Partners Group's larger portfolio transactions in the Nordic region. Parmaco, which builds temporary and permanent modular structures, was acquired in 2021 and employs about 300 people, generating annual revenue of some EUR 100 million. Its operations stretch beyond its Finnish home market into Sweden, Denmark and Germany. A completed deal would free up substantial liquidity for the fund's investors and would not be expected before 2027.

A Parallel Push Into European Residential

While the Parmaco review unfolds, Partners Group has teamed up with Empira Group to launch the Empira Pan-European Living Strategy, a vehicle targeting a total volume of EUR 1 billion. Fundraising is set to begin immediately after the launch, with the initiators aiming for a first interim closing in the third quarter of 2027. The initiative reflects a broader effort to channel institutional capital into European residential real estate and to secure fee-generating business across longer cycles.

UBS Trims Its Target

Sentiment around the stock has been strained. On Monday, UBS lowered its price target for Partners Group shares to CHF 670 from CHF 705. Analyst Mate Nemes pointed to delays in the sale of portfolio companies, more cautious return assumptions and higher costs for hedging foreign-currency exposure.

The market has already priced in much of that pressure. The shares have lost roughly 40 to 41 percent since the start of the year, recently changing hands at EUR 629.40, only about 1.0 percent above their 52-week low of EUR 623.00 touched on 24 September. Whether the newly launched initiatives and any portfolio separations can steady the mood will depend heavily on how institutional backers respond to the upcoming fundraising — and on how quickly planned currency and divestment proceeds actually materialize.