Allianz, NPS to establish $2.3bn investment platform in Asia Pacific

Allianz, NPS form $2.3bn investment platform in Asia Pacific

Allianz announced that it has partnered with The National Pension Service of Korea (NPS) to establish a USD 2.3 billion investment platform to build a diversified core portfolio of high-quality properties in the Asia Pacific region.

The platform will be in the form of a new Singapore domiciled, closed-end fund called Allianz Real Estate Asia-Pacific Core I (AREAP Core I) which will boast an investment capacity of over USD 4.6 billion.

The AREAP Core I strategy is to align with secular macro trends and take advantage of individual country and sector cycles to build a diversified portfolio of income-producing assets. The venture will focus on Japan, Australia, Singapore, Hong Kong and China, seeking core investment opportunities across office, logistics, multi-family and student housing sectors. 

NPS and Allianz group companies will be 50:50 investors whereas Allianz Real Estate will serve as the Investment Manager and General Partner of the venture. 

“This is a significant step forward in our ambition of bringing like-minded third-party investors to invest alongside Allianz. We view this as the beginning of a scalable partnership between NPS and Allianz, two highly respected long-term institutional real estate investors. We are incredibly proud of Rushabh Desai and our Asia-Pacific team for successfully raising our first third-party equity fund,” said François Trausch, CEO Allianz Real Estate.

Mr. Hyo-Joon Ahn, CIO of NPS, said: “This partnership represents an excellent opportunity to expand our exposure to quality assets in the Asia Pacific region through a co-investment with a like-minded institutional investor like Allianz. The combined global experience and local expertise of the two institutions will provide prioritized access to attractive investment opportunities.”

“Asia-Pacific continues to offer outsized growth prospects with individual markets operating at varied pace, offering an opportunity to build a diversified portfolio within the region. AREAP Core I will have the scale and reach to provide a high level of deal execution certainty for prime/core transactions,” said Rushabh Desai, CEO Allianz Real Estate Asia Pacific. “We are very excited about this strategic partnership with NPS. This new chapter in our growth story acts as a strong validation of our team’s capabilities in the region.”