Allianz Real Estate, the global real estate investment manager of Allianz Group, has partnered with Greystar Real Estate Partners and Canada's Public Sector Pension Investment Board to grow London’s student accommodation platform Chapter.
Allianz Real Estate, on behalf of various Allianz insurance companies, is making a £350 mln (€400 mln) equity investment in the platform, which currently comprises 5,100 student beds in 10 central London locations.
The partnership supports an expansion programme that will double the size of the portfolio to 10,000 student beds within five years.
Greystar will continue to manage the portfolio.
'This joint venture with Greystar and PSP Investments underlines our strategic commitment to scale up our global allocation to high-quality student accommodation in established markets,' said Olivier Téran, Chief Investment Officer of Allianz Real Estate. 'We look forward to playing a key role in supporting the partnership’s ambitious expansion plans and to making additional investments in the sector across the board.'
The transaction marks Allianz's largest equity investment into the UK, which has become an increasing focus for the group across the capital structure, added Téran. 'We will continue to explore opportunities to increase our footprint in the UK as part of our global diversification strategy.'
Recent lending transactions by Allianz in the UK include construction finance for 80 Fenchurch Street in April 2018, provisioning of long term debt worth £212 mln to refinance 55 Baker Street, London in September 2017 and co-financing the iconic CityPoint Tower earlier in the year.
Allianz was advised by Savills and Herbert Smith Freehills.