Allianz Real Estate has provided a €300 million loan to finance ‘Window’, a prime office building in Paris’ La Défense business district.
The 10-year senior loan was secured by Oxford Properties, the real estate arm of Canadian pension fund OMERS. Real Estate Capital understands the loan has a LTV ratio of around 60 percent.
The office complex is currently being refurbished and will be delivered in 2018. It has seven storeys and approximately 44,200 square metres of floor space. Its main tenant is RTE, the state-owned French company responsible for the power grid in France.
“With this transaction, we expanded our European loan book to €6 billion in a short period of time after having reached €5 billion in the first quarter of this year,” said Roland Fuchs, Allianz’s head of European real estate finance.
Allianz has lent in France since 2012. The French market currently accounts for 30 percent of the insurer’s debt loan book. The German insurer is also present in this market through equity, with a portfolio of €7bn.
Earlier this month, Allianz participated in a £212 million (€235 million) majority stake in the senior debt financing of 55 Baker Street in London.
The long-term financing was the insurer’s second landmark transaction, having co-financed the CityPoint Tower earlier this year.
The participation in the CityPoint deal plus this recent transaction brought Allianz’s UK debt exposure to around £500 million, as the insurer targets more exposure to the country.
The move to boost the UK loan portfolio is part of the German insurer’s strategy to be a “truly” pan-European debt lender, with increasing real estate loan books not only in Europe, but globally, Fuchs said at the time.
Targeting the office, retail and logistics sectors, Allianz provides loans ranging from €150 million to €300 million with a duration sweet spot of seven years and above.