Munich-headquartered global financial services group Allianz is investing €140 mln in IPUT, a debt-free investment fund focused on commercial real estate in Ireland.

Munich-headquartered global financial services group Allianz is investing €140 mln in IPUT, a debt-free investment fund focused on commercial real estate in Ireland.

The investment marks the first foray by Allianz Real Estate in the Irish property market.

IPUT, led by CEO Niall Gaffney and with funds of €1.2 bn, is primarily invested in prime large scale commercial office and retail properties located in Dublin’s central business district. The vehicle was the winner of the IPD European Property Investment Awards Winner for Ireland in 2011, 2012, 2013 and 2014.

Its portfolio consists of 80 office, retail and industrial properties with an occupancy rate of 96%, a weighted average unexpired lease term of 8 years and annual rental income of 70 mln.

Commenting, Allianz Chief Investment Officer Charles Pridgeon, said: 'As the economic recovery in Ireland takes hold, supporting improving demand particularly in the domestic economy, we see the potential for strong long term income returns at attractive levels for our stakeholders. IPUT's long term investment strategy and approach coincides with our own and we are looking forward to an ongoing and mutually beneficial relationship in the interests of our respective stakeholders."

'It is very encouraging that global groups of the standing of Allianz are selecting IPUT as their investment fund of choice in this market,' added IPUT's CEO Niall Gaffney. 'This investment in IPUT coincides with a period when interesting opportunities of institutional-grade quality are starting to materialise in the Irish market. It also supports our corporate strategy to diversify IPUT’s shareholder base from pure Irish domestic pension funds to a broader audience of international institutional investors.'