Allianz buys 50% stake in Gaw-Vailog mainland logistics JV
Allianz has acquired a 50 per cent stake in a portfolio of mainland China logistics assets according to a statement from the company last week, as the German insurer continues to expand its holdings in the country.
The deal was executed by Allianz Real Estate, the property investment and asset management division of the Munich-based firm, which purchased the stake from a joint venture between Vailog China, the local division of an Italian industrial property specialist, and a fund managed by Hong Kong’s Gaw Capital Partners, according to the statement by Allianz.
The acquisition is the latest in a flurry of deals by Allianz since it appointed former GE executive Rushabh Desai to run its Asia Pacific operation in late 2016. Following that move, Allianz has invested more thanEuros 1 billion ($1.13 billion) in mainland China assets, including office, retail and now logistics properties.
Allianz’ shed deal gives it a half stake in a portfolio of logistics assets that include distribution centres in the Chinese cities of Shanghai; Jiaxing, in Zhejiang province; Foshan, in Guangdong; Wuhan, in Hubei; and Shenyang, in Liaoning province.
“This transaction is in line with our strategy of aligning our investments to mega-trends in the Asia-Pacific region,” Rushabh Desai, CEO for Asia Pacific at Allianz Real Estate said in the statement. “Demand for logistics in China is underpinned by growth in e-commerce, middle class accession and infrastructure build-out.” Desaid added that the new portfolio, which is composed of projects completed between 2016 and 2017 and were described as core properties, complements the insurer’s existing logistics holdings on the mainland.
Together the properties have a total leasable area of approximately 375,000 square metres, according to the announcement and are leased to tenants including Vipshop, Carrefour, Miniso and Alog among others.