Allianz Real Estate, on behalf of several Allianz group companies, has acquired a 300-unit affordable housing portfolio in Germany for €135 mln in an off-market forward purchase from specialist developer Schultheiß Projektentwicklung.
The portfolio‘s three assets, currently under development and due for completion by the end of 2022, are located in Nuremberg in the state of Bavaria.
Annette Kröger, CEO region north & central Europe at Allianz Real Estate, said: 'The Schultheiß portfolio is an excellent opportunity to gain traction in affordable housing where we see potential to scale up.
'At the same time, and as one of the world's largest investors in real estate, we have a responsibility to grow our portfolio through assets that have a positive environmental impact, which is why we will invest further into these properties so that the future tenants are housed in industry leading homes.'
Allianz noted that the deal would help the city of Nuremberg reduce the significant supply and demand imbalance – currently there is a waiting list of some 8,000 applicants – for affordable housing.
The portfolio will also form part of the group's carbon neutrality ambitions. During the first year of ownership, the assets acquired will undertake further development to ensure they are compliant with the carbon risk real estate monitor (CRREM) decarbonisation pathway and can therefore have a positive, long-term impact on the environment.
The assets are all well located within Nuremberg‘s public transportation network, with the city centre reachable within 10 minutes. Two of the assets lie in close proximity to each other in the vibrant district of Sündersbühl; the third is located in the southern district of Röthenbach-West.
Nicole Pötsch, head of acquisitions & sales for north & central Europe at Allianz Real Estate, commented: 'We have a strong track record of successfully diversifying into new sectors, geographies and via different investment styles and this first transaction in affordable housing in Germany is further evidence of that.
'Affordable housing as a sub-sector within residential is well suited to our long-term approach to investment due to the stable income component.'
Allianz Real Estate was advised by Clifford Chance, CBRE, BMP and KPMG.
