Allianz Real Estate claims that it will soon make its biggest Asian investment to date as part of a larger plan that will see the company invest USD3.3 billion in real estate throughout the region during the next three years. The company owns Chinese and Japanese property assets at the present time.
The financial services giant has set up a USD150 million pan-Asian investment fund that will allow Allianz SE’s property division to make a few small purchases before buying buildings directly, Francois Trausch, chief executive officer of Allianz Real Estate, told the media during a recent interview.
“There will be volatility, but we believe in the long-term trends in Asia,” Trausch explained. “China and India would be the two countries to anchor our Asia strategy.”
According to Insurance Journal, Allianz will attempt to make direct acquisitions throughout Asia over the course of the next few years. The firm currently oversees nearly EUR100 million worth of real estate in the region which pales in comparison to the company’s property holdings in Europe and North America.
It was noted that Allianz will look to invest as much as EUR6 billion in real estate worldwide during 2016 as the company aims to grow its portfolio to EUR60 billion by 2019. Allianz is predicting that somewhere around five percent of these property assets will be located in Asia which also includes Australia. Allianz has nearly EUR230 million worth of property located throughout the country.
However, a majority of the company’s purchases are most likely to be in China. Allianz is keen on finding real estate investment opportunities in Shanghai and Beijing due to the country’s evolving economy.
“In China, we like offices and logistics in the key cities, because that’s where you see the change from a manufacturing economy to a service economy,” the website reported Trausch as saying.
Image: The Skyper Tower in Frankfurt, Germany – one of the assets owned by the Allianz Group.
