Allianz Real Estate AUM reaches EUR67.1bn

Allianz Real Estate, the real estate investment and asset manager of Allianz Group, has seen assets under management increase to EUR67.1 billion as of the end of June 2019, up EUR3.6 billion since the start of the year.

Growth has come from continued expansion across Europe, the US and Asia Pacific and diversification across asset types, sectors and investment styles.
 
François Trausch, CEO of Allianz Real Estate, comments: “The sophisticated nature of our clients means we are in a strong position to add new strategies each year. Our growth during the first half of 2019 underlines this approach as, alongside our impressive work in our core office sector, we have made significant investments in, for example, logistics and have increased our exposure to value-add. Here we see good value and pricing opportunities in the style, particularly with regards to the development of higher tech, more sustainable buildings. We have recently announced, for instance, new deals with developer EDGE Technologies in Hamburg and Berlin, as well as the redevelopment of our Corso Italia 23 asset in Milan, which set a benchmark for smart office buildings. The transaction in Berlin was also our first third-party equity deal and we expect more such deals looking ahead as we target EUR100 billion in AUM by 2024.”
 
Equity investment has increased from EUR44.2 billion to EUR48.2 billion, up 9.1 per cent since the start of 2019. There has been growth in Europe, the US and Asia Pacific. Asia has seen the strongest relative growth over the last six months.
 
Allianz Real Estate secured multiple deals in the first half of 2019, including the acquisition of a 49 per cent interest in office condominium in New York’s 30 Hudson Yards office building for EUR342 million; and the acquisition of the Castellana 200 Prime mixed-used office and retail asset located in central Madrid for EUR250 million.
 
“While the global office sector remains our largest industrial allocation, we have announced a number of logistics deals in 2019 as global demand in quality logistics assets intensifies. Diversification continues to play a fundamental role in our investment strategy, depending on the best outcome for our investors and stakeholders. We have continued to benefit from this unconstrained approach,” says Olivier Téran, CIO of Allianz Real Estate.
 
The debt financing business of Allianz Real Estate registered assets of EUR18.9 billion as of the end of June.
 
The firm’s European debt portfolio was EUR7.7 billion. In mid-June, the firm completed a prime real estate debt deal in Germany as sole lender for the refinancing of existing debt for Gropius Passagen in Berlin for EUR230 million – taking its debt fund to EUR1.5 billion in deployed capital at the time. The transaction followed further prime European deals in April totalling EUR476 million, including the financing of Southbank Central in London for EUR200 million for an affiliate of Starwood Capital Group, and the refinancing of EUR 164 million for the 22,000 sq m, prime office asset at 92 Avenue de France. Fundraising for the Luxembourg-regulated debt fund, launched in mid-2018 to satisfy the appetite for debt of smaller Allianz companies alongside external investors, was opened to third-party investors in mid-2019.
 
In the US, Allianz Real Estate’s debt business reached EUR11.2 billion and registered several key transactions across the office, residential and industrial sectors, with the most prominent being its co-commitment of EUR282 million alongside Barings to fund the acquisition of the 650 Townsend office building in San Francisco. The company provided further financing for the US Environmental Protection Agency’s regional headquarters in Denver and the 298-unit Maeve Apartments apartment community in Stoneham, Massachusetts.