Allianz Real Estate plans to expand UK debt investments

Allianz Real Estate is planning to increase its debt investments in the UK, following its participation in the financing of London office tower.

The property of arm of German insurer Allianz said it will focus on lending to buyers of core office, retail and logistics assets in the UK.

It was revealed that Allianz Real Estate participated in the senior financing of the 36-storey CityPoint building, arranged and underwritten by Morgan Stanley.

Last year, Brookfield Asset Management bought the office tower, which has 66,000sqm of space, is 90%-leased and is situated next to ongoing Crossrail development in central London.

Allianz Real Estate said the transaction is part of the “roll-out strategy to grow the debt exposure in the UK”.

Roland Fuchs, head of European debt for Allianz Real Estate, said: “For Allianz Real Estate this is the first single-asset real estate debt transaction in the UK, and represents a stepping stone towards our overall UK lending strategy.

“The implementation of our UK strategy will lead to further diversification of our European debt portfolio.”

Allianz Real Estate has been increasing its real estate debt investments globally. In 2016, its debt portfolio grew to €14.7bn as it added €1.9bn in the US and €900m in Europe.

It recently provided long-term financing for the acquisition of IZD Tower, a high-rise office building in Vienna bought by CBRE Global Investors on behalf of Korean investors.

Last year it also co-financed a €366m pan-European portfolio managed by Invesco Real Estate.

Allianz Real Estate total global assets, including equity investments, reached €50bn after making €5.8bn of new investments in 2016.

Chief executive Francois Trausch said 2016 “was a very active year for us”.

He said: “Given the ongoing low interest rates, the Allianz companies continue to find real estate an attractive investment opportunity.

”We have expanded our portfolio strategy to 24-seven megacities such as New York, Shanghai and London, as well regionally to Asia-Pacific and Iberia.

“Over 2017, we will look to further diversify our portfolio geographically and product-wise.”