Allianz to build up €5b debt portfolio by 2017

Allianz Real Estate is targeting a €5 bn debt portfolio over the next three to five years, according to the newly-appointed real estate finance chief Roland Fuchs.

Allianz currently has about €1 bn invested in debt, largely in France and Germany. ‘‘We will be active in markets where we are also an equity investor, targeting quality long-term sustainable investments. Our strategy now is to roll out our debt strategy beyond the borders of Germany and France throughout continental Europe,’ Fuchs said.

Fuchs joined Allianz in October from the French office of German bank Helaba.

He noted that margins are ‘tremendously’ under pressure in Germany, which is currently the most competitive market in Europe. In order to compete with traditional lenders, Allianz is prepared to go an extra mile by offering flexible solutions including longer terms of up to 12 years in addition to traditional 5-7 year loans, he added.

'We have the flexibility to enter into direct client relationships or to team up with bank partners and alternative lenders, also considering higher LTVs and large ticket financings. We can also distribute the financing between the different investor entities of the Allianz group.’

The company can offer loans with leverage of up to 70% depending on the country and the opportunity, he added. In terms of markets, the company will be focusing on countries where it is already present with its real estate equity team. 'We will mainly focus on core style investments although we are prepared to also consider core plus and value added.'

Fuchs has over 20 years of experience in the European real estate finance business, both in origination and portfolio management. Fuchs is based in the Paris and Munich offices of Allianz Real Estate and reports directly to CEO Olivier Piani. He is also a member of the Allianz Real Estate executive committee.