Hindustan Times ST (Jaipur) - - World - Bidya Sapam

Global in­sur­ance firm Al­lianz Group on Thurs­day an­nounced that it has part­nered with Shapoorji Pal­lonji Group to set up a $500 mil­lion real es­tate fund—SPREF II—which will in­vest in com­mer­cial of­fice prop­er­ties in In­dia.

The trans­ac­tion, which marks the Ger­man firm’s first in­vest­ment into real es­tate in In­dia, was con­ducted by Al­lianz Real Es­tate, a $63.5 bil­lion real es­tate in­vest­ment and as­set man­age­ment firm within the group.

This deal forms part of Al­lianz’s strat­egy to al­lo­cate around 5% of its global real es­tate port­fo­lio to the Asia Pa­cific re­gion, the com­pany said.

Al­lianz will own 50% of the plat­form, and the re­main­ing will be held by long-term in­sti­tu­tional in­vestors. The fund plans to raise $500 mil­lion in eq­uity. “In­dia is strate­gic to the Al­lianz Group. In growth economies like China and In­dia, real es­tate pro­vides a scal­able en­try into the mar­ket for Al­lianz in terms of in­vest­ments/as­set man­age­ment exposure,” said Fran­cois Trausch, global CEO, Al­lianz Real Es­tate.

The fund plans to build a “long term, cash flow pro­duc­ing of­fice port­fo­lio by ac­quir­ing a blend of de­velop-to-core, for­ward pur­chases, and sta­bi­lized or sta­bi­liz­ing as­sets.”

The six tar­get cities are Mum­bai, Ben­galuru, Hy­der­abad, Pune, Chen­nai, and Delhi-Na­tional Cap­i­tal Re­gion .

“We are look­ing to de­ploy ap­prox­i­mately 60% of our Asi­aPa­cific al­lo­ca­tion to growth economies. The In­dian econ­omy has been con­sis­tently out­per­form­ing,” said Rushabh De­sai, Asi­aPa­cific, chief ex­ec­u­tive of­fi­cer (CEO), Al­lianz Real Es­tate.


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