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Allianz Real Estate invests US$150 million in India property development fund

By Asia Asset Management  
Aug 14, 2019

Allianz Real Estate, the real estate investment management arm of German insurer Allianz Group, is investing US$150 million in Godrej BTC, a closed-end commercial property development fund in India.

The fund, managed by Godrej Fund Management, the asset management arm of Indian conglomerate Godrej Group, focuses on the development of premium grade A offices in tier-one Indian cities, Allianz Real Estate says in a statement on August 13.

According to the company, the investment is part of its strategy to allocate 50%-60% of its real estate exposure within Asia Pacific to fast growing markets such as China and India.

It says the deal marks "the expansion of Allianz's real estate presence in India". The company made its first investment in India in 2017 by establishing an office investment platform together with Shapoorji Pallonji Group, another Indian conglomerate.

Last year, it tied up with Hong Kong-based developer ESR to build a US$1 billion logistics real estate portfolio in India.

Godrej BTC has already acquired development land in Mumbai and Gurgaon and is evaluating two other sites in Bangalore, a spokesperson for Allianz Real Estate tells Asia Asset Management.

Rushabh Desai, Allianz Real Estate’s chief executive officer for Asia Pacific, says the company continues to believe in the long-term growth prospects of India’s economy.

"Strong demographic trends and improving transparency are supporting real estate occupier as well as investor demand, in particular the office sector, which is ideal for long-term institutional investors such as Allianz," Mr. Desai says in the statement.

Munich-based Allianz Real Estate had 67.1 billion euros (US$75.08 billion) of assets under management as at June 30, 2019.