NPS and Allianz agree to build $2.3bn real estate fund

The National Pension Service of Korea (NPS) and Allianz have agreed a US$2.3 billion deal to build a diversified core portfolio of high-quality properties in the Asia Pacific region. The Allianz Real Estate Asia-Pacific Core I (AREAP Core I) closed-end fund will be domiciled in Singapore. NPS and Allianz will be 50-50 investors with Allianz Real Estate serving as the investment manager and general partner. “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,” Allianz Real Estate said in a statement on June 30, 2020. “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,” it added. Commenting on the deal, Rushabh Desai, chief executive of Allianz Real Estate in Asia Pacific said: “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.” Earlier this month, Allianz Real Estate and Charter Hall Group struck a deal to jointly acquire a logistics portfolio of four Aldi distribution centres in Australia for A$648 million (US$449.2 million). © 2020 funds global asia

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