Allianz, Shapoorji Pallonji Group to set up $500 million realty fund

Cornelia Mascio
Ottobre 13, 2017

Allianz, one of the world's leading insurers and asset managers, said it has partnered with Shapoorji Pallonji (SP) Group to establish SPREF II, a $500-million Singapore-domiciled, rupee-denominated, closed-ended fund targeting the office market in India.

Allianz will own 50 percent of the rupee-denominated closed-ended fund, SPREF II, while long-term institutional investors will hold the rest, it said on Thursday.

The deal forms part of Allianz's plan to allocate about 5 percent of its global real-estate portfolio to the Asia-Pacific region, Allianz said.

The fund's strategy in six tier I cities will be to build a long term, cash flow producing office portfolio by acquiring a blend of develop-to-core, forward purchases, and stabilised or stabilising assets. The six target cities are Mumbai, Bengaluru, Hyderabad, Pune, Chennai, and Delhi-National Capital Region.

The fund will be supported by the Shapoorji Pallonji Investment Advisors team and led by veteran dealmaker Rajesh Agarwal.

Francois Trausch, Global CEO of Allianz Real Estate, noted: "India is strategic to the Allianz Group. The Indian economy has been consistently outperforming", said Rushabh Desai, Asia-Pacific chief executive officer, Allianz Real Estate. Strong secular growth, stellar demographic trends, and improving transparency are supporting stable real estate occupiers as well as investor demand, in particular the office sector which is ideal for long-term core investors like Allianz, he added.

Shapoor Mistry, chairman, Shapoorji Pallonji Group, said, "We view this partnership as the first step in a relationship which will focus on creating long-term value for the investors and will be supported by Shapoorji Pallonji Group's experience in delivering and managing real estate assets across key markets in India".

Khaitan & Co, Ernst & Young, and Macquarie Capital Securities (India) acted as advisors to Allianz.

The sale of Adani Realty's Mumbai commercial building complex, BKC Inspire, is.

Civil construction and real estate major Shapoorji Pallonji & Company Ltd.

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