Allianz Real Estate said on Friday that it has delivered €2.2 bn of new loans in Europe across 2021, the highest annual volume for the firm in Europe to date.
The record financing volume, split roughly equal between core and transitional loans, means overall assets under management in its European debt portfolio exceeded €11 bn at the end of the year.
The firm’s financing platform continues to be active in 12 European countries, diversified across the office, logistics, residential and retail sectors. Around two thirds of the €2.2 bn in new loans in 2021 were eligible to be classified as ‘green loans’, underscoring the increased focus on sustainability and ESG criteria across Allianz Real Estate’s debt business. This strategic priority supports the firm’s overall ESG programme and its decarbonization target to be net zero by 2050.
Allianz Real Estate concluded the year with multiple transactions in one of its historically core markets, France, in particular Paris. The firm provided an acquisition facility for an office campus in Paris-Meudon and €95 mln financing to the Icawood fund for an office acquisition and refurbishment in Paris-Clichy.
These loans were in addition to the €466 mln loan to a consortium of borrowers for the refinancing of a prime retail portfolio, predominantly located in Paris and Brussels, the largest European debt deal for Allianz Real Estate in 2021. A €127 mln green development loan was provided to the French group Apsys for the construction of a future-fit and state-of-the art retail and lifestyle center in Grenoble.
Further Paris exposure was added earlier in 2021 through a major facility to JP Morgan AM and Altarea Entreprise for the acquisition and redevelopment of seven office assets near Opéra Garnier.
The year also saw the successful increase of third-party volume under Allianz Real Estate’s Luxembourg-based European debt fund, Parec. New third-party capital flows into the fund from BVK and a further likeminded investor group reached €610 mln for the year, bringing total third-party commitments to almost €1 bn for investing alongside Allianz.
Roland Fuchs, head of European Real Estate Finance at Allianz Real Estate said: ‘2021 was the strongest year yet for us in terms of new loan production, and we expect continued demand in 2022 across our 12 markets given the firm’s unparalleled positioning in Europe and our deep funding appetite. The ongoing evolution of our Luxembourg debt fund also underscores the success of our ‘invest alongside Allianz’ client approach.’