Allianz Joins Shapoorji for $500 Million India Real Estate FundBy and
Allianz to own 50% of fund, rest with institutional investors
Platform can buy or develop $1.5 billion in assets: Shapoorji
Allianz SE, one of Europe’s biggest asset managers, will partner with developer Shapoorji Pallonji Group to enter India’s commercial real estate market.
Allianz Real Estate and Shapoorji will aim to raise $500 million in equity for a Singapore-domiciled, rupee-denominated, closed-ended fund targeting the office market in India, Allianz said in a statement on Thursday. Allianz will own 50 percent of the fund, and the remaining will be held by other institutional investors.
With this level of equity, the platform can buy out or develop assets close to $1.5 billion in India, according to calculations from Rajesh Agarwal, chief executive officer at Shapoorji Pallonji Investment Advisors Pvt.
The fund’s strategy will be to build a long term, cash flow producing office portfolio across six key markets: Mumbai, Bengaluru, Hyderabad, Pune, Chennai, and the National Capital Region that includes Delhi, according to the statement. Allianz aims to allocate about 5 percent of its global real estate portfolio to the Asia Pacific region.
“India is strategic to us given the growth prospects,” Rushabh Desai, Asia-Pacific chief executive officer at Allianz Real Estate, said in a phone interview from Mumbai. “We see opportunities in office, logistics and retail and will be looking at these areas over the next 12-to-24 months.”