Allianz Real Estate, acting on behalf of several Allianz Group companies, has signed an agreement with affiliates of Majestic Realty Co. to finance part of their portfolio located in Aurora, Colorado. The portfolio consists of nine industrial buildings known as Majestic Commercenter. The nine non-crossed collateralized loans amount to US$135mn and follow eight additional loans already provided to Majestic.
Mike Cale, Co-head of US Debt, Allianz Real Estate added: “As we continue to expand our lending footprint in the US, we seek to partner with like-minded owners. We privilege long-standing client relationships, and we look to continue supporting those clients like Majestic who offer Allianz Real Estate growth opportunities through investing in prime real estate in excellent locations.”
As a result of the latest deal, Allianz Real Estate has a debt exposure to Majestic of US$270mn across several loans in different parts of the country. The nine buildings of Majestic’s Commercenter, located five miles from Denver International Airport and ten miles from downtown, have an estimated gross leasable area (GLA) of 2 million square feet and a combined occupancy rate of 93%.
The property fits well with Allianz Real Estate’s focus on investing in core plus assets that can bring an upside in revenues as occupancy rates increase and consist stable cash flows over the long term. At the moment, seven of the nine buildings are at a 100% occupancy rate, while the remaining two require further improvement.
“2019 was an active year for Allianz Real Estate in the US – in terms of both equity and fixed income. On the debt side, Mike Cale joined the team to lead our Origination in the middle of the year and we originated over 60 deals with a total value of US$2bn, bringing the portfolio to US$13bn. Our investors’ appetite remains strong for US Debt in 2020 and we will look to fulfill their ambitions for a diversified portfolio of 50 loans over the coming months,” said Christoph Donner, CEO of Allianz Real Estate of America.