Allianz is co-financing a pan-European property portfolio facility that was arranged and underwritten by Aareal Bank AG. The share of Allianz in this financing (totaling € 610 million) amounts to € 366 million and is granted for a 10 year term. The deal is being conducted by Allianz Real Estate, the strategic center of real estate expertise within Allianz Group, on behalf of Allianz Leben. The borrower is Invesco Real Estate (IRE) for a portfolio covering 27 prime locations across seven countries in Europe.
The arrangement, which was first announced on 5th December 2016, provides IRE with the flexibility to extend the facility by an additional € 390 million up to a maximum amount of € 1 billion, which is yet uncommitted. Aareal Bank acted as arranger and agent for this facility. The transaction is one of the biggest loan facilities and syndicated financings in the real estate industry in 2016.
“The landmark initiative is another proof for Aareal Bank’s expertise in providing high-volume, cross-border and cross-currency financings in cooperation with the insurance sector. It reflects our aim to further increase our syndication activities with strategic partners”, said Christian Schmid, Managing Director Business and Syndication Management at Aareal Bank.
“With this transaction, Allianz further expands and diversifies its European real estate debt portfolio. We appreciate the chance to accompany a like-minded investment partner such as Invesco Real Estate during the set-up of this landmark financing alongside Aareal Bank. This investment allows us to offer stable returns to Allianz insurance customers", said Roland Fuchs, Head of European Real Estate Finance at Allianz Real Estate.
"With this investment, our customers participate in the positive development of the European real estate market. Especially in the low yield environment, investments in real estate loans are an important building block to insure an attractive yield for our customers", said Andreas Lindner, Investment Manager at Allianz Leben.
