SUBSCRIBERS

Allianz, Korean pension service set up Asia-Pac property fund

With leverage, fund to have US$4.6b war chest; focus will be on Singapore, Japan, Australia, China and Hong Kong

Kalpana Rashiwala

Published Sun, Jun 28, 2020 · 09:50 PM

Allianz

Singapore

ALLIANZ has teamed up with The National Pension Service of Korea (NPS) to set up a property fund with US$2.3 billion equity. With leverage, the fund will have the capacity to invest in US$4.6 billion of real estate in the Asia-Pacific region.

Allianz group of companies and South Korea's NPS will contribute 50:50 to the closed-end fund's equity. In addition, Allianz Real Estate is the investment manager and general partner of the fund, Allianz Real Estate Asia-Pacific Core I (AREAP Core I).

Domiciled here, the fund will pursue equity investments in Singapore, Japan, Australia, Hong Kong and China across office, logistics, multifamily residential and student housing sectors.

"The new fund is likely the largest diversified closed-end core property fund in Asia Pacific and will provide us the scale and reach to access attractive investment opportunities," said Rushabh Desai, chief executive of Allianz Real Estate Asia Pacific, in an interview with The Bus…