Allianz Real Estate pays $420m for stake in Manhattan office asset

Allianz Real Estate has paid $420m (€375m) for a 44% stake in a Manhattan office tower.

The deal puts Allianz in partnership with Related Companies, Oxford Properties Group and institutional investors advised by JP Morgan Asset Management.

The block is part of the wider mixed-use Hudson Yards development on Manhattan’s west side.

The 10 Hudson Yards asset is 94% let, with a weighted average lease term of nearly 17 years.

The property includes a tenant roster including L’Oreal USA and Boston Consulting Group.

Allianz said the 1.6m sqm Hudson Yards scheme was one of New York City’s largest developments since the construction of the Rockefeller Center in the 1930s.

The development, which also includes retail and residential space, is the largest private real estate project in US history.

Francois Trausch, chief executive of the German insurance group’s property arm, said the deal was part of the company’s drive to increase exposure to “24/7 global cities”.

Allianz last year took a 49% stake in a US office portfolio owned by TIAA-CREF.

Six office properties and two land parcels in Miami’s Waterford at Blue Lagoon were bought for $374.5m.

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