Allianz commits €290m in UK develop-to-core logistics venture

Allianz invests in €290m in UK develop-to-core logistics venture

The forward acquisition of Frontier Park, a 760,000 sq ft logistics facility in the UK, marks the fourth acquisition for this venture since the partnership alongside AEW was announced in 2019. The three other UK assets have been successfully developed and are currently fully leased to prime occupiers.

Logistics is a high-conviction investment theme for Allianz Real Estate. The venture with AEW has enabled Allianz Real Estate to rapidly diversify into the UK logistics sector – a major growth market that allows for further expansion given the lack of suitable assets.

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The acquisition of Frontier Park, following properties in Lichfield, Castle Donnington and Wakefield, provides further geographical balance to the venture and a footprint in one of the UK’s key regional distribution locations. In line with the decarbonization targets of the venture partners, all assets incorporate market-leading specifications, including BREEAM ‘Very Good’ energy certification and EPC ‘A’ energy efficiency.

Hugues Braconnier, Head of Logistics, Allianz Real Estate, said: “Frontier Park represents the very best in the UK logistics sector and fulfils a tangible need for smart distribution infrastructure. The successful deployment of capital underscores the strength and quality of Allianz Real Estate’s sector approach in the UK and our strong desire to build on this momentum.”

Kari Pitkin, Head of Business Development, Allianz Real Estate, said: “The need for prime logistics assets remains critical across Europe. Our focus remains on building our exposure, working with prime partners to develop state-of-the-art facilities to address the shortage of supply in each market.”

As of September 2021, Allianz Real Estate’s global logistics portfolio had grown to EUR 10.3 billion in AUM – up by 17% year-on-year – with significant deals announced across 2021 as the firm catered for record demand for prime assets.