The two parties will be 50:50 investors on an APAC property platform domiciled in Singapore.
Allianz Group will work with Korea's National Pensions Service (NPS) on a $2.3 billion joint venture to build a diversified core portfolio of high-quality properties in the Asia Pacific region, the company announced in a statement on Monday.
The new Singapore domiciled, closed-end Allianz Real Estate Asia-Pacific Core I fund will have an investment capacity of over $4.6 billion, with Allianz Real Estate serving as the investment manager and general partner of the venture, the announcement said.
The partnership will allow NPS to build its exposure to Asia Pacific real estate assets in cities like Japan, Australia, Singapore, Hong Kong and China, where Allianz sees core investment opportunities across office, logistics, multi-family and student housing sectors, it said.
Significant Step
«This is a significant step forward in our ambition of bringing like-minded third-party investors to invest alongside Allianz. We view this as the beginning of a scalable partnership between NPS and Allianz, two highly respected long-term institutional real estate investors,» François Trausch, CEO Allianz Real Estate, said.
Allianz Real Estate Asia Pacific CEO Rushabh Desai highlighted the «outsized growth prospects» of the region, and said AREAP Core I will have the scale and reach to provide a «high level of deal execution certainty for prime/core transactions.»
Asian Growth
In March, Allianz Real Estate was incorporated into parent company Pimco's private strategies platform within its alternatives unit, as part of the latter's strategy to grow its real estate investments worldwide.
As of end-2019, Allianz RE's assets under management in Asia reached $6.2 billion, up 83 percent on-year, as a result of a number of successful strategic investments and diversification throughout the region. Its Asia Pacific business is headquartered in Singapore.
