Allianz Real Estate, acting on behalf of several Allianz companies, has committed USD 150 million to a closed-end office development platform managed by the Godrej Group, one of the leading business houses in India. This investment is part of Allianz’s strategy to allocate 50-60% of its real estate exposure within the Asia-Pacific exposure to fast-growing markets such as China and India.
The platform, Godrej BTC (‘GBTC I’), targets the development of premium Grade-A offices in tier one cities in India. It has secured two developments, one each in Mumbai and Gurgaon, totaling 2 million square feet and has a current pipeline of 1.3 million square feet in Bengaluru. Allianz, Godrej and a European pension manager will each own a third of the office development platform; Godrej Fund Management will act as the investment manager.
This transaction marks the expansion of Allianz’s real estate presence in India. In 2017 Allianz made its first investment in India by establishing an office investment platform with Shapoorji Pallonji, which was followed by a logistics development venture with ESR in 2018.
“We continue to believe in the long-term growth prospects of the Indian economy. Strong demographic trends and improving transparency are supporting real estate occupier as well as investor demand, in particular the office sector, which is ideal for long-term institutional investors such as Allianz,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate. “We are excited about this new partnership. Godrej is one of the most trusted brands in India with a successful track record in office. We are confident that the platform will deliver upon completion a premium office product that is increasingly sought after by multinational tenants operating in India.”
“We are pleased to partner with Allianz Real Estate on our office development platform, GBTC I. GFM’s unique blend of strong development management and investment management capabilities positions us well to deliver on the opportunity to develop and manage world class Grade - A office assets across India,” said Karan Bolaria, Managing Director & CEO, Godrej Fund Management.
Allen & Gledhill, Khaitan & Co, Ernst & Young and AECOM acted as advisors to Allianz