Allianz grows Asia-Pacific logistics portfolio with deals in India and China

Allianz grows Asia-Pacific logistics portfolio with deals in India and China
24/11/2018 , by , in INTERNATIONAL

Allianz is expanding its €700m Asia-Pacific logistics portfolio with two new investments in India and China.

The German insurer’s €60bn real estate investment arm has entered into a partnership with the Hong Kong-based Gaw Capital to acquire a portfolio of core modern logistics across China.

Allianz Real Estate has also committed to 50% of start-up capital of US$225m (€198.3m) with the pan-Asian logistics group ESR to develop facilities across India.

The transaction cost of the Chinese logistics assets was not disclosed, but IPE Real Assets understands that the deal was done on a “5.5% to 6%” yield.

The portfolio has some 375,000sqm of lettable space. In the current market in China, logistics assets are trading at US$450 to US$500 per square metre.

Speaking to IPE Real Assets, Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate, said the co-investment with Gaw was a stabilised portfolio and would provide “a nice balance” to its first logistics investment in China.

Desai said Allianz had currently invested in a development platform with other partners managed by Brilliant, a Chinese group. The platform has equity of US$350-US$400m.

With the investment with Gaw, Desai said Allianz was close to achieving its “intermediate goal” of having a billion-euro exposure in Chinese assets, including logistics.

In India, Allianz has entered its second real estate investment programme. The manager’s first real estate transaction in the country was made last year when it partnered with Shapoorji Pallonji to set up an office fund.

The deals forms part of Allianz’s strategy to allocate around 50% of its Asia-Pacific real estate investment exposure to growth markets.

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