GERMANY - IVG Immobilien, Germany's biggest listed property firm, has acquired €1.3bn worth of office properties in Germany from insurance giant Allianz to be included in an upcoming German real estate investment trust (G-REIT).
The seven properties sold to IVG include Allianz office buildings in Frankfurt, Hamb urg, Stuttgart and Munich which Allianz will lease back from IVG.
IVG said its G-REIT, set to be launched next spring, now had €3.3bn in assets with these new properties and, once launched, the listed, tax-privileged vehicle is to focus on office buildings in major German cities and have €3.5bn in assets.
"Following this deal, our planned office REIT will have a balanced mix of rented properties that provide steady cash flow and those with the potential to appreciate in value," remarked Wolfhard Leichnitz, chief executive of IVG.
For its part, Allianz said the sale of the properties was motivated by a wish to decrease its exposure to German office buildings within its real estate portfolio as that portfolio currently accounts for 3% of Allianz's total assets.
"In the coming years, we will also increase our real estate exposure to 7% of assets from 3% now and in doing so, invest in a wider array of properties in Germany," the insurer added.
Yet before it increases its overall real estate exposure, Allianz plans to sell more of its directly-held properties in Germany.
A spokeswoman for the insurer in Munich confirmed another property package was currently being put together but declined to give further details. Media reports suggest the properties could be worth €2bn.
This Allianz deal brings IVG's total commercial property assets under management to above €19bn.
No comments yet