Allianz Real Estate Creates a Steady Stream of Investments to Various Companies
Allianz Group subsidiary Allianz Real Estate is looking at expanding its portfolio of investments. Next in its sights in Asia, with sectors in the Indian and Chinese real estate markets next in its long list of investment targets. In China, Mingtiandi reported that Allianz Real Estate is looking at possibly $175 million forwarded to a real estate investment fund. Allianz is targeting KaiLong Group, particularly the Greater China Real Estate Fund II. These consists of Chinese and Hong Kong commercial real estate. Allianz said that the deal would enable them to take a 35 percent share in a closed-ended capacity.
The German-based group made no secret to the aim of their investments. Explaining further, Allianz Real Estate Asia Pacific CEO Rushabh Desai said that they are looking for economies that are showing strong growth-to the tune of 50 to 60 percent-to allocate investments in. The signs they are looking for are continued urbanization, improving transparency, strong secular growth and the transition to a service-oriented economy.
Each investment, more ambitious than the previous, is in line with the predecessor of the Greater China fund. This time, commercial and industrial office fixtures are getting the spotlight, located in cities like Hong Kong which are classified as first-tier. KaiLong's Hong Kong CEO Ivan Ho explained this in an interview and it could have been the reason for Allianz' attention.
Only a day after the Chinese acquisition, Allianz announced a $225 million investment program to be set-up by fund management platform ESR Group for Indian investments. Again, Allianz is selecting tier one and tier two cities to create an investment cash flow. Indian cities included in the deal are Ahmedabad, Bangalore, and Chennai, as well as Hyderabad, Mumbai, and Pune.
Cited in the Asia Asset report is the reason behind the creation of investment streams. According to Desai, the mega-trends installation in the greater Asian region is a lucrative investment. The Allianz Group recognizes the value of this, and, coupled with China's rise in the region, it is seen as a win-win for all parties involved.
Allianz Group's relationship with Asian investments started with a $100 million investment in the Redwood Japan Logistics Fund 2 last September 2017. So far, as of this year, Allianz' investments into Asia have totaled around €60 billion.