Allianz Real Estate has provided £120 mln (€141 mln) in debt financing to The Office Group (TOG), majority owned by real estate funds managed by the Blackstone Group, for the acquisition and refurbishment of Chancery House in London.
The deal, completed on behalf of several Allianz group insurers, is the fifth debt transaction in London for Allianz Real Estate and the first since it opened its London office in mid-2019.
Chancery House is a 150,000 sq ft (13,940 m2) prime asset in Midtown on an island site minutes from Chancery Lane underground tube station. Post refurbishment it will be TOG’s flagship asset in a market which is increasingly attracting a mix of businesses from the legal, media and digital sectors.
The financing of Chancery House is one of the latest deals to be completed through Allianz Real Estate’s Luxembourg-based debt fund, which was launched in 2018 to simplify access to European real estate debt investments for Allianz group insurers and third-party investors. The transaction means that the fund now has approximately €2 bn in assets under management.
'The UK offers excellent opportunities for institutional debt investors on a select and disciplined basis. London is a leading global gateway city, with demand for prime assets that can be successfully repositioned to meet changing tenant demands,' said Shripal Shah, head of Debt Origination - London, Allianz Real Estate. 'Chancery House is a unique, landmark asset that complements our London portfolio and supports our aspirations for strong growth in the market in 2020 and over the long term.'
