Allianz Real Estate is one of the world’s largest real estate investment managers, developing and executing tailored portfolio and investment strategies globally on behalf of a range of global liability driven investors, creating long-term value for clients through direct as well as indirect investments and real estate financing. With €75.3 billion (US$ 89.5 billion) assets under management and over 480 investment professionals at the end of June 2021, Allianz Real Estate invests globally but manages properties locally with a focus on income-producing investments, balancing with total return plays.
In 2008 Allianz Real Estate was formally structured into a global center of expertise for real estate investing which brought the real estate teams of the various Allianz businesses together into a single and focused real estate group and became a part of the investment management division of Allianz Group. In 2018 it opened its capabilities to external clients; and in 2020 it transferred to the Group’s asset management division under the leadership of PIMCO, one of the world’s premier fixed income investment managers. Launched in 1971 in Newport Beach, California, PIMCO was acquired by the Allianz Group in 2000.
Industrial: The current backdrop might create an attractive opportunity to participate indirectly in the retail sector in a broader sense. Logistics is expected to continue its strong momentum driven by e-commerce and supply-chain optimization. We look at assets with proximity to major transit nodes alongside detailed analyses of the operator.
Office: Employees might increasingly work from home after the pandemic. Highly densified mega cities will be less impacted by structural changes due to smaller urban homes. Offices are evolving to a place for collaboration with a variety of amenities. Office remains the most advanced asset class. We focus on high density cities (city by city approach), CBD markets, preferably multitenant and on high quality buildings.
Residential: Residential is an attractive asset class. It is an essential need of living which became even more fundamental during the pandemic. It is, however, highly management intensive and at risk from governmental regulations and reputation. We focus on securing long-term stabilized yield while also considering micro-level trends.
Retail: The pandemic accelerated structural changes in retail. The fashion branch is expected to be most cost sensitive, while grocery stores out-performed. We stay very cautious in terms of sourcing focusing on dominant shopping centers and partnering with best-in-class operators.
Student Housing: Historically crises had a positive impact on the number of students. Hence, student housing is expected to recover fast. Recovery of the hotel sector is expected to take several years and needs to be monitored closely. Due to increasing online business and digitalization the demand for data centers increases. We focus on student housing at universities that have a diverse student base and on resilient and trending sectors such as data centers.
Investment principles & strategy
Allianz Real Estate is a prudent, sustainable investor who understands the challenges of investing for policy holders and pension funds. The strategy for our business’ growth is diversification: by geography, strategy, investment style and asset class. By leveraging our industry and structuring knowhow we have opened our capabilities to third-party businesses who wish to invest alongside Allianz.
We are long-term investors in real estate and consider equity and debt opportunities in the same light. This is why Allianz Real Estate‘s offering focuses on a global real estate portfolio with long-term capital growth across both equity and debt. We invest globally but manage our properties locally and target properties combining rising returns with a reasonable risk profile in euro terms. The investment team focuses on properties with a Prime element. We define Prime as high-quality assets and we look for that quality in assets we target to finance that are characterized by four main criteria: market, location, asset quality, managers.
Strategic corporate development
In 2018, the Management Board of Allianz tasked Allianz Real Estate with investment management of real estate investments for third-party clients. This strategic path included the opening of several offices across our global business, with the Stockholm and London offices opening in 2019 and the Shanghai and Tokyo offices opening in 2020. Alongside this, a considerable increase in headcount globally, with over 75 additional new hires in 2019 and over 40 in 2020, has facilitated the expansion of our acquisition and asset management teams on the ground and expanded our capacity and range of capabilities to support them. To continue to support our AUM growth and third-party ambitions, the firm plans to hire over 50 additional professionals over the next 3 years.
The sole purpose of this presentation (“Presentation”) is to provide information on a non-reliance basis. In this Presentation Allianz Real Estate GmbH and Allianz Real Estate of America, their subsidiaries and affiliates are jointly referred to as “Allianz Real Estate ”. Allianz Real Estate is a PIMCO company.
Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or target where provided is indicative only and not guaranteed in any way. Allianz Real Estate accepts no liability for any failure to meet such forecast, projection or target.
No representation, warranty or undertaking is given by Allianz Real Estate or any other person in respect of the fairness, adequacy, accuracy or completeness of statements, information or opinions expressed in the Presentation and neither Allianz Real Estate nor any other person takes responsibility for the consequences of reliance upon any such statement, information or opinion in, or any omissions from, the Presentation. The information contained in this Presentation has not been audited or verified. The material contained herein is for informational purposes only and does not constitute legal, tax or investment advice. ©2021, PIMCO.