Allianz sells €130m Italian resi package to Cerberus

Allianz Real Estate has sold a portfolio of 141 residential assets in Italy to a fund invested by US private equity Group Cerberus Capital Management, as tipped by PropertyEU in March.

The Alloro fund, managed by BNP Paribas Sgr and owned by Cerberus, has acquired the package which includes 1,420 residential units as well as a minority of partly-led offices in the cities of Trieste, Torino and Milano.

PropertyEU reported in March that the US private equity firm was in due diligence on the residential portfolio.

The disposal is part of Allianz's strategy to exit the low-yielding residential sector in Italy and increase its exposure to retail assets as well as real estate-secured debt in the country.

Commenting on the transaction, Allianz's Italian head Mauro Montagner said the Group 'had reached its objective of simplifying the portfolio through the increase of the average size of the assets'.

Studio Legale Chiomenti and Reag advised Allianz on the deal.

DEBT MOVE
Allianz Real Estate currently owns a €2.4 bn portfolio in Italy. Last year the company bought a majority share in the Fiumara shopping centre in Genoa as well as the Allianz tower in Milan's Citylife.

The company expects to enter the Italian real estate lending sector this year, Montagner recently announced.

'The authorities in Italy have cleared the situation regarding lending by insurance companies and we plan to start being active in the debt market.'

Following changes last year to Italy's withholding tax system and property lending legislation, it is now possible and cost-efficient for insurance companies to lend directly in the country. Previously insurers could only do so through a separate specific structure, which often made the investment too costly.

'This is a great opportunity for us and for the Italian market,' Montagner commented.