As 2019 closes, Allianz Real Estate announced another strong year of growth in the US after deploying over US$3bn on behalf of several Allianz group companies.
The US Debt team, led by co-heads Mike Kraweic and recently hired Mike Cale, originated 60 new transactions – a record number of closings for the calendar year – with a total value of US$2bn. Alongside this, the equity team, led by another new hire Karen Horstmann, acquired the iconic 30 Hudson Yards in New York City alongside several indirect investments with strategic partners across the region. This growth reflects Allianz Real Estate’s continued desire for quality real estate in the 24/7 cities of the world and makes a significant contribution to its global ambition to reach US$110bn by the end of 2024.
“The past 12 months has been a year of next steps for Allianz Real Estate in the US, all supporting our investors long term goals and our fast growing business has attracted a number of strong hires in both New York and Atlanta, enabling us to deploy a record US$3bn over equity and debt" said Christoph Donner, CEO of Allianz Real Estate of America. “Our total exposure to the region is US$19bn, as we represent 26% of the global Allianz Real Estate Portfolio.”
Allianz Real Estate’s acquisitions within the Hudson Yards development shows its appetite for strong investments with long-term returns. Along with a US$348m stake and a 49% interest in the condominiums of 30 Hudson Yards, it also expanded its US logistics footprint by US$568m. The Hudson Yards acquisition, follows the 2016 purchase of a 44% stake in 10 Hudson Yards, the first tower completed in the Hudson Yards development on Manhattan’s West Side, in mid-2016 for US$420 million.
“The US equity team has had another impressive year of making selective, long-term investments,” said Karen Horstmann. “We committed US$1.1bn across core office, c. 110 logistics properties and developments, and c. 5,700 high quality residential units.”
2019 financing activity further diversified its geographic footprint across the United States. High profile debt investments included 650 Townsend (US$319.1m) - LEED Platinum certified office property located at the crossroads of San Francisco’s SOMA and Showplace Square Districts; and 3000 Olympus Boulevard (US$93m) – a 467,366 sq ft office building located in Dallas.
“2019 was a very strong year with our debt team able to meet our client’s objectives by financing a diversified portfolio of 60 transactions totalling US$2bn”, said Mike Cale, Co-Head of Debt at Allianz Real Estate of America “In addition to deploying the capital for our clients, we were able to exceed our yield targets in an increasingly competitive market environment.”
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