Allianz SE, Europe’s largest insurer, joined with Clal Insurance Enterprise Holdings Ltd. and Waterton Associates LLC to buy U.S. apartments valued at as much as $800 million.
The partners will invest in the metropolitan areas of New York, Chicago, Boston, Northern California, Seattle and Washington, D.C., the companies said Tuesday in a statement.
The move “allows Allianz to increase its long-term exposure to the U.S. multifamily market as well as expand our network of strategic co-investment partners,” Christoph Donner, head of Allianz Real Estate of America, said in the statement.
Allianz is among investors betting on properties in the world’s largest economy as corporate bonds and government debt yield near-record lows. In December, the Munich-based insurer said it would work with Manulife Financial Corp. in a $1 billion commercial-property venture. The national apartment vacancy rate was 4.2 percent at the end of the first quarter, down from 8 percent five years earlier, according to property-research firm Reis Inc.
Clal is majority-owned by Tel Aviv-based IDB Development Corp., according to data compiled by Bloomberg.