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AllianzGI achieves rapid first close for real estate debt fund

The firm’s debut vehicle sees it broaden its investor base and will target both fund and co-investments.

Allianz Global Investors has held a first close on its debut real estate private debt fund on €515 million. The Allianz Global Real Estate Debt Opportunities Fund was launched just two months ago.

Although AllianzGI has built a real estate debt fund portfolio of more than €5 billion in assets under management over the last decade, the launch of the AGREDO fund marks the first time professional investors have been given the opportunity to join Allianz insurance companies in the strategy.

The fund allows investors to invest jointly with AllianzGI in a globally diversified portfolio of higher yielding real estate debt opportunities with strong downside protection. It will invest in real estate debt funds and co-investments financing real estate assets and development projects globally.

AGREDO is aiming to achieve portfolio diversification by investing across geographies, segments, vintage years, sectors and financing situations. Sectors will include residential, logistics and office, as well as niche segments such as student housing and science parks. At least 50 percent of the capital in each future investment of the fund will be provided by Allianz.

The AGREDO fund is managed by the same team as the Allianz Global Diversified Private Debt Fund. AGDPDF, which was launched in June 2021, also invests through funds and co-investments but in corporate private debt rather than real estate private debt.

AllianzGI manages around €93 billion in private market assets.

This article first appeared in affiliate publication Private Debt Investor

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