Allianz takes majority of €610m Aareal loan to Invesco

Allianz has taken a €366 million participation in the €610 million loan which Aareal Bank recently provided to Invesco Real Estate.

The ten-year financing was originally arranged and underwritten by Aareal. The deal is being conducted by Allianz Real Estate, the German insurer’s specialist property unit, on behalf of Allianz Leben.

Real Estate Capital reported earlier this month that Allianz was in the frame to join the financing deal, which refinances Invesco’s pan-European open-ended fund. Aareal and Allianz previously teamed up for a €630 million financing of NorthStar Realty’s European office portfolio acquisition in 2015.

As part of the agreement, Invesco can extend the loan to £1 billion, which is uncommitted at this stage.

“With this transaction, Allianz further expands and diversifies its European real estate debt portfolio. We appreciate the chance to accompany a like-minded investment partner such as Invesco Real Estate during the set-up of this landmark financing alongside Aareal Bank. This investment allows us to offer stable returns to Allianz insurance customers,” said Roland Fuchs, head of European real estate finance at Allianz Real Estate.

“Especially in the low yield environment, investments in real estate loans are an important building block to insure an attractive yield for our customers”, added Andreas Lindner, investment manager at Allianz Leben.

The loan is secured by a portfolio covering 27 prime European locations. The portfolio is located in the UK, Spain, France, Germany, Italy, the Netherlands and Poland.

“The landmark initiative is another proof for Aareal Bank’s expertise in providing high-volume, cross-border and cross-currency financings in cooperation with the insurance sector. It reflects our aim to further increase our syndication activities with strategic partners,” said Christian Schmid, managing director of business and syndication management at Aareal Bank.