German real estate asset manager Allianz Real Estate is on a drive to almost double its real estate portfolio to €60 bn in the next three years, the company’s CIO Olivier Téran told PropertyEU at Expo Real in Munich last week.
German real estate asset manager Allianz Real Estate is on a drive to almost double its real estate portfolio to €60 bn in the next three years, the company’s CIO Olivier Téran told PropertyEU at Expo Real in Munich last week.
‘Today, our property portfolio totals €37.4 bn but we’d like to grow it – on the equity and debt side – to €60 bn by 2018,’ he said. ‘In the first nine months of this year alone, we invested €1.2 bn in Europe.’
Allianz Real Estate has invested €3.3 bn worldwide this year, of which €1.4 bn was invested in real estate either directly or indirectly with an additional €1.9 bn committed to real estate lending, according to the group’s head of European real estate finance, Roland Fuchs.
Speaking at Allianz Real Estate’s media roundtable at Expo Real last week, Fuchs noted that the insurer has spent €1.15 bn on debt in Europe so far this year. 'The European loan portfolio now stands at €3.3 bn – we have doubled it in the past two years,’ Fuchs said.
The nature of the loans that Allianz underwrites has also changed over the past year, Téran said. ‘We do bigger and more complicated loans now,’ he said. ‘Our debt business has accelerated and we also underwrite pan-European loans. We will typically underwrite up to €350 mln on our own or more with partners. We are very disciplined when it comes to our covenants and cap our LTVs at between 55% and 65%.’
The group’s debt business is spread over 10 countries, including Germany, Spain and Ireland. Combined with loans made in the US, Allianz has now extended €10.6 bn in credit for real estate.
Allianz' German CEO Annette Kröger said that the investment target of €900 mln per year for Germany and northern and eastern Europe remains in place. Acquisitions in Unterföhring near Munich and Berlin for a total of €350 mln have put the group on track to hit that target, she added.
Currently, real estate accounts for about 4% of Allianz’s overall portfolio.