MIPIM 2016: Allianz doubles European loan book

€1.9 billion of new lending in 2015 brings its book to €4 billion

Allianz Real Estate almost doubled its European loan portfolio during 2015, with €1.9 billion of new lending bringing its book to €4 billion.

The German insurer’s global loan portfolio now stands at €12.4 bilion,  it will announce at MIPIM in Cannes this week.

In the US, where Allianz has been a real estate lender for 30 years, $2 billion (€1.7 billion) of new loans were written in 2015, bringing the US loan book to €8.4 billion. The insurer’s real estate lending team, which is led in Europe by Roland Fuchs, is targeting similar volumes again this year.

The 2015 European total is a significant increase on 2014 when €635 million of new lending business was written. After launching European real estate lending in 2011, first financing German investors, Allianz lent into ten different European countries last year. They included Ireland, France, the UK, Spain and Italy.

Its largest transaction in Europe during 2015 was a €365 million participation alongside Aareal Bank to finance NorthStar Realty’s €1.1 billion pan-European office portfolio acquisition, alongside Aareal.

Allianz also made its first loan in Ireland, taking half of a €300m loan to Starwood Property Trust that was underwritten by Morgan Stanley.

Allianz’s loan sweet spot is €100-€250 million, with larger deal sizes targeted. Loan terms tend to be between seven and 20 years, usually on a floating rate basis. The firm caps LTV at 75 percent in Germany, 65 percent in France and 60 percent in Italy.

Among its debt investments in the US last year was a $237 million loan to a JV including a German client in Washington DC.

Overall, Allianz made new direct and indirect property investments of €3.6 billion last year.