Allianz Real Estate, the global real estate investment manager of Allianz Group, has partnered with Greystar Real Estate Partners (“Greystar”), the global rental housing leader and the Public Sector Pension Investment Board (“PSP Investments”), one of Canada’s largest pension investment managers in a joint venture to grow Chapter, London’s premier student accommodation brand.
The equity investment volume of the transaction that Allianz Real Estate is executing on behalf of various Allianz insurance companies, stands at around GBP350m.
Allianz is acquiring an interest in Chapter alongside PSP Investments and Greystar’s current stake. This partnership supports an expansion programme that will double the size of the portfolio to 10,000 student beds within five years. The partnership’s strategy is to continue to improve the operational quality of the assets and build the Chapter brand.
Greystar will continue to manage this portfolio, which currently comprises 5,100 student beds in 10 central London locations, including Aldgate, Islington, King’s Cross, South Bank and Spitalfields. Chapter White City in west London, the newest addition to the Chapter portfolio, will launch in September 2018.
“This joint venture with Greystar and PSP Investments underlines our strategic commitment to scale up our global allocation to high-quality student accommodation in established markets”, said Olivier Téran, CIO of Allianz Real Estate. “We look forward to playing a key role in supporting the partnership’s ambitious expansion plans and to making additional investments in the sector across the board.
“This transaction is particularly important for Allianz as it also marks our largest equity investment into the UK, which has become an increasing focus for us across the capital structure. We will continue to explore opportunities to increase our footprint in the UK as part of our global diversification strategy.”
The joint venture marks a milestone in a series of transactions to build Allianz’s UK footprint. Recently, the lending business of Allianz Real Estate has significantly increased its exposure through several transactions, including construction finance for 80 Fenchurch Street in April 2018, provisioning of long term debt worth GBP212 million to refinance 55 Baker Street, London in September 2017 and co-financing the iconic CityPoint Tower earlier in the year. On the equity side, building on an existing exposure to the student housing sector in the UK via Unite’s USAF since 2015, Germany and the US, Allianz announced in April 2018 its partnership with Scape Australia to establish “Scape Australia JV 2”, an AUD-denominated, closed-ended fund targeting the purpose-built student accommodation market in Australia.
In this transaction, Allianz was advised by Savills and Herbert Smith Freehills.
The transaction is subject to customary regulatory approvals.
When introducing a property investment opportunity to PIMCO Prime Real Estate you acknowledge that we are under no obligation to accept your introduction or enter into any agreement with you. Fees, commission or other payments in respect of introductions shall only be payable where there is a signed written agreement to that effect entered into between PIMCO Prime Real Estate and the introducer. By submitting an introduction to PIMCO Prime Real Estate you shall be deemed to have accepted the aforementioned terms.
"PIMCO Prime Real Estate” is a PIMCO company that includes PIMCO Prime Real Estate GmbH, PIMCO Prime Real Estate LLC, and their subsidiaries and affiliates: PIMCO Prime Real Estate GmbH (Company No. 158768, Seidlstrasse 24–24a, 80335 Munich, Germany), PIMCO Prime Real Estate GmbH Belgium Branch (VAT No. BE 0841.512.711, Boulevard Roi Albert II, 32, 1000 Brussels, Belgium), PIMCO Prime Real Estate GmbH France Branch (SIRET No. 509 339 669 00053, 50-52 Boulevard Haussmann, 75009 Paris, France), PIMCO Prime Real Estate GmbH Italy Branch (Numero REA MI-2107576, Piazza Tre Torri, 3 20145 Milano, Italy), PIMCO Prime Real Estate GmbH Spain Branch (NIF W2760686B, Paseo de La Castellana, 200 Edificio Spaces, 28046 Madrid, Spain), PIMCO Prime Real Estate GmbH Sweden Branch (VAT No. SE516411865401, Norrlandsgatan 18, 111 43 Stockholm, Sweden), PIMCO Prime Real Estate GmbH UK Branch (Company No. FC036236, 11 Baker Street, London W1U 3AH, United Kingdom), PIMCO Prime Real Estate Asia Pacific Pte Ltd (UEN 202000233H, 12 Marina View #17-02 Asia Square Tower 2, Singapore 018961), PIMCO Prime Real Estate (Shanghai) Co, Ltd (Company No. 91310115MA1K4KBT0L, 479 Lujiazui Ring Road, Shanghai Tower, Pudong New District , Shanghai 200120, People’s Republic of China), PIMCO Prime Real Estate Japan GK (Company No. 0104-03-022895, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan), PIMCO Prime Real Estate LLC (File No. 5234055, 1633 Broadway, New York, NY 10019-6999, USA). PIMCO Prime Real Estate LLC is a wholly-owned subsidiary of Pacific Investment Management Company LLC, and PIMCO Prime Real Estate GmbH and its affiliates are wholly-owned by PIMCO Europe GmbH. PIMCO Prime Real Estate GmbH operates separately from PIMCO. PIMCO Prime Real Estate LLC investment professionals provide investment management and other services as dual personnel through Pacific Investment Management Company LLC.
PIMCO Prime Real Estate is a trademark of PIMCO LLC and PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world.