Allianz and AEW create €290m UK sheds venture

German insurer Allianz has unveiled a new partnership with global investment manager AEW, entailing a new develop-to-core strategy focused on funding speculative developments within the UK logistics sector.

The venture, an Allianz-owned separate account vehicle managed by AEW, will focus on units of 200,000 ft2 (18,500 m2) or larger in prime locations in the UK. The venture is being managed by Allianz Real Estate on behalf of Allianz group insurance companies, who have committed €290 mln in total.

'With the favourable backdrop of limited availability and increasing tenant demand for larger format warehouses, AEW and Allianz Real Estate have identified a clear opportunity to build a portfolio of core assets in the UK,' said Olivier Téran, chief investment officer, Allianz Real Estate.

'This new venture reflects Allianz’s focus on working with prime partners such as AEW and diversifying our portfolio with regards to the in-demand logistics sector,' Téran added.

'The timing is right to launch this develop-to-core strategy,' said Nick Winsley, head of investments at AEW UK Investment Management. 'In a market where significant pools of capital continue to focus on a limited supply of investment stock or pre-let fundings, our strategy is to fund the development of larger buildings on a speculative basis.'

Allianz Real Estate were advised by Herbert Smith Freehills while Mishcon de Reya advised AEW.


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