Allianz Real Estate’s growth soars amid debt boom

The Munich-based insurer expanded its loan portfolio by €3.7bn in 2017.

Allianz Real Estate, the German insurance giant which entered the property lending market in 2011, expanded its debt business last year, driven by landmark deals across Europe and a buoyant US market.

Senior financing activity grew by €3.7 billion in 2017, based on almost identical lending performances in the European and US markets. A total of €1.9 billion of lending was completed in Europe during the year, with US business falling slightly shorter at €1.8 billion.

Allianz Real Estate’s loan portfolio now stands at €16 billion, seven years into its debt strategy, which is led in Europe by Roland Fuchs. The US market has proved most fruitful for the German firm – its US debt portfolio stands at €9.9 billion, with Europe at €6.3 billion.

The firm is a core, senior lender in major cities. Deals done last year included a €290 million financing of BVK’s Liffey Valley mall near Dublin and £212 million (€239 million) for London & Regional’s 55 Baker Street in London.

The insurer also co-wrote a €300 million debt facility to fund Amundi’s acquisition of Amsterdam’s Atrium office complex, in a deal dubbed the largest single-asset financing in the Dutch office market last year. In Paris, it provided a €300 million loan to finance ‘Window’, a prime office building.

“European debt played a central role in our asset growth in 2017, with a number of landmark deals for our pan-European portfolio,” said Fuchs. “The development of our UK strategy has led to further diversification of our European debt portfolio, and the UK remains a market of interest for us going forward.”

Across its debt and equity businesses, Allianz Real Estate hit a record €56 billion assets under management by the end of 2017, with new investments of €8.9 billion, representing a record year for the firm.

“Real estate remains a very attractive asset class for Allianz,” said Francois Trausch, CEO of Allianz Real Estate. “We continue to grow and diversify our global portfolio, not only in our established markets in Europe and the US, but also by expanding our footprint in Asia with significant investments in India and China.”

The firm is aiming for €75 billion of AUM by the end of 2020.

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