MUMBAI: Allianz, one of the world’s leading insurers and asset managers, said it has partnered with Shapoorji Pallonji (SP) Group to establish SPREF II, a $500-million Singapore-domiciled, rupee-denominated, closed-ended fund targeting the office market in India. The proposed fund marks Allianz’s first real estate transaction in India.
“The fund is targeting to raise $500 million in equity,” Allianz group said. Allianz, for which the Indian market is strategic, will own 50 per cent of this platform, and the remaining will be held by long-term institutional investors.
“In growth economies like China and India, real estate provides a scalable entry into the market for Allianz in terms of investments/asset management exposure,” said Francois Trausch, global CEO of Allianz Real Estate.
The platform’s strategy would be to acquire or develop office properties in six cities -- Mumbai, Bengaluru, Hyderabad, Pune, Chennai, and National Capital Region. With help of this equity fund, the JV has the potential to buy out or develop close to $1.5 billion (assuming debt-equity of 2:1) worth of commercial projects across India.
“We view this partnership with Allianz as the first step in a relationship which will focus on creating long term value for the investors,” said Shapoorji Pallonji Group Chairman Shapoor Mistry.
The venture will be supported locally by the Shapoorji Pallonji Investment Advisors team led by Rajesh Agarwal. Shapoorji Pallonji Group is a diversified business house, with clients in over 50 countries.