Investments and Logistics Part Of Allianz Real Estate’s $600 Million Plan
Allianz Real Estate has revealed its plans on the use of its $600 million GLP funds. According to Real Assets, it plans to place focus on developments and investments in logistical assets as well as other assets in Japan and China. Ruhsabh Desai, Asia-Pacific CEO of Allianz Real Estate, was asked to share his thoughts on the matter.
When asked about the investments, he reiterated his belief that the Asia-Pacific region has a lot of potentials to rise up in the investments sector. Logistics, according to Desai, was a core part of the investment strategy and this would never change, where the asset will continue to help Allianz Real Estate's portfolio strategy.
Allianz has been exposed to logistics assets in countries around Asia such as in China, Australia, India, and Japan. The company has been looking into other investment opportunities, such as in South Korea and the Southeast Asian sector. The new investment partnership with GLP, according to the executive, would help scale up partnerships in markets where GLP is already maintaining a 'strong presence.'
Allianz kept on working on their personal surge with another project, this one in partnership with Related Companies. The Real Deal reported that the German investment firm teamed up with the business to buy WarnerMedia's office space, located at 30 Hudson Yards, and then lease it back to the media company.
Allianz will have 45 percent of the stakes available for the office condominium, according to the report. WarnerMedia has been offered a contract priced at $1,466 per sq ft, but it hasn't been accepted as of yet. Allianz had previously closed a deal for 10 Hudson Yards in 2016 for $420 million, where they received Tapestry (aka Coach) and the Kuwait Investment authority.
WarnerMedia, for its part, had started moving their people--all 5,000 of them--into the New York City area, right into the new office. It will also make a move to consolidate the different media avenues it owns for the first time with this move. WarnerMedia has CNN, HBO, Turner Broadcasting, and its very own Warner Bros. moving into the location.
Allianz already maintains presences in China, Singapore, and Japan. It had invested $100 million into the Redwood Japan Logistics Fund II in 2017, which was managed for them by pan-Asian logistics firm ESR. It has offices in China which it invests in through a partnership with Keppel Capital as well as some luxury outlet malls in the region.