Allianz in first-time deal managing equity investment for 3rd party

German insurance giant Allianz, the world’s third-biggest real estate investor, made a significant move on a Berlin office acquisition this month when, for the first time, its property subsidiary Allianz Real Estate will manage an equity investment on behalf of a third party.

Allianz bought the ‘smart office’ development EDGE East Side Berlin in a forward deal on behalf of a joint venture backed by Bavarian occupational pension monolith Bayerische Versorgungskammer (BVK). On completion, Allianz Real Estate will subsequently manage the property.

BVK, Germany’s largest pension fund, which is investing through Universal-Investment, is partnering 50-50 in the joint venture with Allianz Real Estate.

According to Annette Kroeger, CEO for northern and central Europe at Allianz Real Estate, the transaction was the “second leg” of Allianz Real Estate’s move into third-party investment management, having opened up its debt platform to external investors last year. 

She said it was a “logical next step in the evolution” of Allianz. “We are looking for institutional investors who will come in alongside us on joint venture opportunities – where they have the benefit of us committing capital and therefore being very much aligned with them,” she said.

She indicated that Allianz is seeking to team up with similar institutional investors across the world. “BVK is exactly the sort of institutional investor with a very much aligned mindset to what we do at Allianz. Therefore, we think that BVK is a very strong partner for us, and we would hope to develop that relationship further.”

The Berlin deal is Allianz Real Estate’s second with EDGE Technologies, after buying the EDGE HafenCity development in Hamburg in July. Kroeger said of the Berlin EDGE acquisition that the deal “showcases our increasing commitment to developing differentiated, hi-tech assets which focus on sustainability and social well-being. Developing smart buildings has become vital in attracting prime tenants.”

The 35-storey landmark office building in Berlin, boasting the highest possible environmental rating across its 65,000 sqm of lettable space in the Mediaspree sub-market, has been designed by Bjarke Ingels and developed by EDGE – which specialises in developing sustainable, modern office assets that make extensive use of ‘smart’ building technologies. On its completion in 2023, the building will be one of the most hi-tech in Berlin.

The Mediaspree sub-market has become a sought-after, fast-growth location seen as a strong alternative to Berlin’s central business district, especially from the tech sector looking for assets with modern features and larger floor plates.