Allianz Real Estate has invested €140m in an Irish property fund in a bid to gain exposure to the recovery taking place in the country.

The insurer said it had invested in the IPUT Property Fund, Ireland’s largest unlisted property fund, which invests in office and retail property, predominantly in Dublin’s central business district.

Charles Pridgeon, Allianz Real Estate chief investment officer, said there was potential for “strong, long-term income returns at attractive levels” as the economic recovery in Ireland takes hold.

Allianz Real Estate typically invests directly, but it does have an indirect programme. In 2011, the insurer entered a joint venture with AMB Property Corporation (now Prologis) to invest €485m and manage logistics real estate assets in the euro-zone.

IPUT recently bought a 70,000sqm portfolio of Dublin office and retail properties from Bank of Ireland Staff Pension Fund for €115m. IPUT’s portfolio is concentrated mainly in Dublin and Cork.

The fund, which does not use any leverage, was established as an exempt unit trust in 1967. It converted to a regulated property fund at the beginning of this year.

Shareholders in IPUT include ESB Pension Fund, Irish Airline Staff Pension Fund, Coras Iompar Eireann Pension Schemes, Eircom Pension Fund, Guinness Pension Nominees and Aviva Investors.