Magazine: 'Allianz dropped out of Cap 3000 race due to flood claims'

German insurer Allianz withdrew from the race to acquire the Cap 3000 shopping centre in Nice after receiving over EUR 300 mln in claims for a flood which hit the surrounding area earlier this year.

'They had insured the land along the coast, which is subject to frequent flooding,' a reliable source told PropertyEU. 'After the inundation, they decided to step back from making a big acquisition in the same region.'

Dutch partner Corio, with which Allianze had initially teamed up for the acquisition, subsequently decided to go it alone.

In the end, a joint venture of French retail specialist Altarea, Dutch pension fund giant ABP and life insurer Predica bought the shopping centre from Galeries Lafayette for a price of EUR 450 mln, reflecting a net initial yield of 4.65%. The price represents nearly a 25% increase on the asset's appraised value of EUR 350 mln.

The full story appears in the June edition of PropertyEU Magazine. Click on the link below to subscribe