Allianz Real Estate will build and develop a series of prime office assets in Germany’s top four cities in a €1.3 billion program in conjunction with Dutch real estate developer EDGE and German pension fund Bayerische Versorgungskammer (BVK).
The program will cover new ground-up developments as well as existing stock repositioned for predominantly office use.
Each asset is to be located in central, well-established submarkets in Berlin, Hamburg, Munich and Frankfurt.
The program will be managed jointly by Allianz Real Estate and EDGE during each development phase. Post completion, Allianz Real Estate will take over the management of each asset.
Each (re-)development will aspire to the highest standards for building quality, have a strong focus on sustainability and user well-being, and will feature smart technologies as well as new working and space concepts, according to the joint statement.
”On completion, the assets will meet Carbon Risk Real Estate Monitor (CRREM) sustainability standards and support Allianz Real Estate’s targets to reduce carbon emissions across its global portfolio by 25% by 2025 and be carbon net-zero by 2050.”
EDGE has worked with Allianz Real Estate across a number of assets, including EDGE East Side Berlin and EDGE HafenCity Hamburg, with a combined value of €1 billion.
Allianz and BVK most recently partnered in the FOUR Tower 1 deal announced in July last year, managed on their behalf by Allianz Real Estate. The EUR 1.4 billion property, which is being constructed in the heart of Frankfurt’s banking district, was the largest single-asset deal in Germany at the time in 2021. It was the second joint venture between Allianz and BVK, following the forward deal in 2019 to acquire EDGE East Side in Berlin.
”We continue to believe in the office sector and are excited to launch this program with our partners to build up a portfolio of resilient, future-oriented and sustainable assets that will meet future tenant demands,” said Annette Kröger, CEO, North & Central Europe, Allianz Real Estate.
Coen van Oostrom, Founder and CEO, EDGE, said: “We’re thrilled to start this development program with Allianz Real Estate and BVK and have them join our journey to bring better buildings to the world. Together, we trust that we’ll make a larger sustainable impact on our industry and offer the highest quality of future-proof offices to our tenants.”
Norman Fackelmann, Head of Real Estate BVK, said: “We are very pleased to be able to enter into this future-oriented and proven cooperation with Allianz Real Estate and EDGE. The properties, particularly in terms of ESG and digitalization, will play a pioneering role and we will thus live up to our responsibility as Germany’s largest public-law pension group.”