Allianz boosts European debt platform with nearly €500m new deals

German insurer Allianz has completed three refinancing deals in prime locations across Europe for a total of €476m, as it looks to beef up its debt portfolio.

Roland Fuchs, head of European Debt, said the firm was on course to open up its debt platform to third-party institutional investors later this year. 'Our European debt portfolio continues to grow strongly, driven by our focus on prime assets and partners in tier 1 locations in Europe,' he said.

'We are encouraged by the rapid growth of our debt platform and the direct, simplified access it gives Allianz Group insurance companies to prime European real estate debt.'

The largest of the three transactions is the financing of Southbank Central in London for €200m, for an affiliate of private equity investor Starwood Capital Group. Starwood acquired the development project in December last year for a reported €285m and is transforming the former South Bank Tower, which was fully refurbished in 2016, into 21,000 sqm of primarily office space, as well as residential, retail and restaurant components.

The transaction is the latest in a series of major debt investments in London for Allianz, following the financing of St Katherine Docks, 80 Fenchurch Street and 55 Baker Street.

The insurer is also providing €136m of financing for an office building in Paris. The 22,000 sqm asset at 92 Avenue de France was acquired by a 50/50 joint venture including Oxford Properties, with CACIB lending a further €27.4m and acting as arranger. Following the departure of tenant SNCF Réseau, a new 12-year lease was signed with publisher Editis; the firm is set to relocate in January 2020 after the conclusion of a significant capex program

In Stuttgart Allianz is the sole lender in a €140m refinancing deal for the Königsbau Passagen retail and office building on Schlossplatz in the heart of the city. The building, which is asset managed by Evans Randall Investors, was recently sold to Italian investors Antirion SGR and PosteVita after significant enhancement.

Allianz Real Estate's 2018 results show that its European debt portfolio topped €7.8bn for the year, following a record period of €2.1bn in loans and the launch of its Luxembourg-based debt fund, that will open to third party investors. The platform deployed more than €1bn in capital by year-end in deals in the UK, Italy, Ireland, Spain and Sweden.