Allianz expands real estate footprint in growth markets, collaborates with Shapoorji Pallonji

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Allianz expands real estate footprint in growth markets, collaborates with Shapoorji Pallonji

Mumbai: Global insurance firm Allianz Group on Thursday announced that it has partnered with Shapoorji Pallonji Group to set up a $500 million real estate fund-SPREF II-which will invest in commercial office properties in India.

It will put capital to work in cities such as Mumbai, Bengaluru, Hyderabad, Pune, Chennai and Delhi-NCR. "India is strategic to the Allianz Group", Francois Trausch, Global CEO of Allianz Real Estate, said in the statement.

The fund will be supported by the Shapoorji Pallonji Investment Advisors team and led by veteran dealmaker Rajesh Agarwal.

"We are looking to deploy approximately 60 per cent of our Asia-Pacific allocation to growth economies".

The deal forms part of Allianz's plan to allocate about 5 percent of its global real-estate portfolio to the Asia-Pacific region, Allianz said.

The platform's strategy will be to leverage structural trends in six tier-one cities to build a long-term, cash flow producing office portfolio by acquiring a blend of develop-to-core, forward purchases, and stabilized or stabilizing assets. The Indian economy has been consistently outperforming.

"We have partnered with a top local operator to take advantage of this favourable environment".

Allianz will own 50 percent of the rupee-denominated closed-ended fund, SPREF II, while long-term institutional investors will hold the rest, it said on Thursday.

Shapoor Mistry, Chairman of Shapoorji Pallonji Group, said: "We view this partnership with Allianz as the first step in a relationship which will focus on creating long-term value for the investors and will be supported by Shapoorji Pallonji Group's substantial credentials and experience in delivering and managing real estate assets across key markets in India".

Khaitan & Co, Ernst & Young, and Macquarie Capital Securities (India) Pvt Ltd advised Allianz on the deal, while JLL, AZB, and PWC advised the Shapoorji Pallonji Group. On the back of a strong momentum in leasing and thereby falling vacancy levels, a host of investors from domestic and globals domains has queued up to lap up the opportunity.

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