German insurer Allianz has invested €100 mln in the Hines European Value Fund, to widen its exposure to value add opportunities on a pan-European basis.
Allianz Real Estate, the real estate investment and asset manager within the Allianz Group, has conducted the transaction on behalf of several German Allianz entities.
'Europe remains a key focus of our investment strategy,' commented Olivier Téran, Allianz Real Estate chief investment officer.
'Finding good opportunities at reasonable yields is getting more and more difficult, especially in top tier cities. Our new partnership with Hines will increase our exposure to the pan-European value add sector and consequentially provides our investors with superior returns that can be achieved by repositioning and redeveloping assets.'
Having raised €326 mln since the first July closing, the Hines European Value Fund is close to its €500 mln, end of year target. The fund focuses on office and retail in top tier cities in the major markets of Western Europe.
According to Hines, it seeks to provide institutional investors with returns through active value creation ranging from re-gearing to significant redevelopments.
