Allianz RE in talks to buy 50% of Budapest mall

Germany's Allianz Real Estate is in talks with ING Real Estate Development to take a 50% stake in the EUR 200 mln Allee shopping centre in central Budapest. Industry sources told PropertyEU that ING RED, advised by Cushman & Wakefield, is planning to sell half of the property, which opened this month.

The center comprises 47,000 m² of retail space, 7,000 m² of office accommodation and 89 residential units as well as 1,300 parking spaces. ING plans to keep the remaining stake in the property. Jones Lang LaSalle is advising Allianz.

Contacted by PropertyEU, a spokesperson for ING RED confirmed that the company is in exclusive talks with an institutional investor but he did not disclose the name of the potential buyer. 'We will make an announcement disclosing the identity of the investor when we have reached final agreement,' he said.

Olivier Piani, CEO of Allianz Real Estate, declined to comment on the news, but conceded that the insurer aims to finalise two retail deals before the end of the year or in early 2010. 'This is a unique time for retail,' he said, pointing to the fact that several new shopping developments are currently on the market.

Piani is keen to boost the share of retail in Allianz' total portfolio. Currently retail accounts for less than 10% of the EUR 70 bn portfolio, with offices making up 70% and residential 20%. 'Retail is a major spearhead,' he noted.

Earlier in November the German insurer was said to be buying La Colisée office building in Paris' La Défense business district from Morgan Stanley's French listed real estate investment arm La Lucette for some EUR 160 mln. The deal would be the first large transaction carried out by the real estate arm of the insurance giant since the arrival of Oliver Piani as the new head of the company.

Allianz Real Estate Germany recently begun to invest again after a four-year absence from the market with last week's purchase of the commercial scheme in Berlin-Zehlendorf for approximately EUR 18 mln.

A spokesperson for JLL's Hungarian operations declined to comment on the report about the Allee mall.