Activist investor Union Investment called on PATRIZIA Immobilien AG to pay shareholders a special dividend amounting to €300 million, or roughly €3.50 per share, from an asset sale, Reuters reported.

Union Investment fund manager Michael Muders told the news outlet that PATRIZIA has not delivered on its promise to deploy the roughly €250 million in proceeds from the sale of the Harald portfolio into opportunistic transactions.

PATRIZIA CFO Karim Bohn, however, brushed off Muders' demand, saying the proceeds are better invested in expansion. "Paying out a large part of our equity capital would hurt the company's development," Reuters quoted Bohn as saying.

Union Investment holds a more than 4% stake in PATRIZIA, according to the report.