Allianz Real Estate has expanded its European debt portfolio with the provision of a £400m (€440m) loan in London, in a deal which represents the manager’s largest single-loan debt transaction in Europe.

The manager, through its Luxembourg-based debt fund PAREC, has financed a 630,000sqft portfolio of five central London offices owned by Lazari Investments.

The deal is the first transaction between Allianz and the Lazari and Allianz’s seventh debt transaction in London and it is the third since it opened its London office in June last year.

With this transaction, the Allianz debt fund now has approximately €3.4bn in assets under management.

Shripal Shah, head of debt origination - London, Allianz Real Estate, said: “This portfolio of five prime freehold central London offices reaffirms our commitment to the London market and its importance in driving our long-term investment strategy.

“Despite the current environment, the UK market continues to offer excellent opportunities for investment, with London, in particular, remaining one of Europe’s most active and attractive property markets.”

Roland Fuchs, head of European debt, Allianz Real Estate, said: “We are delighted to be expanding our European debt fund portfolio with a like-minded counterpart such as the Lazari group, with whom we share our belief and willingness to partner together for the longer term.

“Our European debt business pursues its prime oriented, resilient and sustainable debt investment strategy on a pan-European level whilst continuing to take a disciplined approach to growing our portfolio of high-quality assets.”

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