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Allianz finances development of 2.4m sq ft portfolio of build-to-core UK logistics assets

 

The 2,388,086 sq ft portfolio is located in key UK locations of Milton Keynes, Felixstowe, Basildon, Bristol and Wembley, with all sites benefiting from access to primary transportation routes. The Wembley asset will be based in Park Royal, London – Europe’s largest multi-owned industrial estate with around 1,700 businesses employing 43,100 people in sectors including food, transport and manufacturing.

Each of the properties will meet stringent ESG criteria, targeting EPC A and BREEAM Excellent Certification. They will also undergo a Carbon Risk Real Estate Monitor (CRREM) assessment to ensure they are in line with UK decarbonization and energy reduction pathways. CRREM is aligned with the requirements of the Paris Agreement to limit global warming to 1.5°C.

The logistics sector remained the most resilient of the main commercial property sectors in the UK in 2020, showing investment volumes of just over GBP 10 billion, slightly below the previous peak of GBP 11 billion in 2017. The UK is forecast to record the highest development completions in 2021 with 40 million sq ft set to be delivered.

BentallGreenOak is a global real estate investment management advisor serving the interests of more than 750 institutional clients with approximately USD 69 billion of assets under management. The firm, which has offices in 24 cities across 12 countries, is a part of SLC Management, the alternatives asset management business of Sun Life. Allianz Real Estate already has an established lending relationship with BentallGreenOak in the US.

Allianz Real Estate saw its European debt portfolio grow to EUR 10.6 billion in assets under management as at the end of June 2021, up by around 18% year-on-year, with capital deployed by its European debt fund, PAREC, increasing to more than EUR 4 billion.

Shripal Shah, Head of Real Estate Finance UK at Allianz Real Estate, said: “This is our first transaction with BentallGreenOak in Europe and extends the lending relationship for Allianz with a prime, like-minded and highly reputable partner. These will be core, well-located and sustainable assets catering for a fast-growing market.“

Roland Fuchs, Head of European Real Estate Financing at Allianz Real Estate said: “European debt remains a fundamental driver of growth for Allianz Real Estate. Our dedicated approach and market experience make the firm well-positioned to meet institutional demand across asset classes and asset types. Our expectation is that lending will remain strong as economies recover and new requirements such as ESG mean borrowers look to work with prime partners such as Allianz.”

Allianz Real Estate is a PIMCO Company, comprising Allianz Real Estate GmbH and Allianz Real Estate of America and their subsidiaries and affiliates. It is one of the world’s largest real estate investment managers, developing and executing tailored portfolio and investment strategies globally on behalf of a range of global liability driven investors, creating long-term value for clients through direct as well as indirect investments and real estate financing. The operational management of investments and assets is performed out of 18 offices in key gateway cities across 4 regions (West Europe, North & Central Europe, USA and Asia Pacific). For more information, please visit: www.allianz-realestate.com. PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the nearly 50 years since, the firm continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions. PIMCO has offices around the world and 3,000+ professionals committed to delivering superior investment returns, solutions and service to its clients. PIMCO is owned by Allianz SE, a leading global diversified financial services provider.  

Source: Allianz Real Estate, data as at 31st December 2020.   

The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million[1] private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 793 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage more than 1.8 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.
Phillip Lee
Allianz Real Estate
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:

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The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million[1] private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 793 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage more than 1.8 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2020, over 150,000 employees achieved total revenues of 140 billion euros and an operating profit of 10.8 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.