Allianz Real Estate has launched a Luxembourg regulated debt fund to accommodate the growing demand for debt investments.
Roland Fuchs, the company’s head of European debt, said the fund is initially targeted at Allianz clients, especially the smaller companies whose investment size has made it difficult for them to participate in the individual debt deals.
The fund, however, will be opened to third party investors in 2019.
Francois Trausch, CEO of Allianz Real Estate, said Allianz continues to find real estate an attractive asset class and the launch of its debt fund will further support the company’s aspiration to exceed €100 billion ($72.35billion) over the next five years.
As of end-June, the company’s AUM reached €60.1 billion ($43.48 billion). Direct and indirect equity investments stood at €42.5 billion ($30.75 billion) while the financing business of Allianz Real Estate reached €17.6 billion ($12.73 billion) for the second quarter.
Trausch said the company is 18 months ahead of its schedule to achieving its 2020 AUM target of €60 billion ($43.41 billion).
Over the past one year, Allianz has introduced new strategies like forward purchases in Europe, as well as entered new markets, including India, London and the Chinese office market. This year, Allianz also announced the acquisition of ZLink in Beijing.
Out of its total portfolio AUM of €60.1 billion ($43.48 billion), only about €2.2 billion ($1.59 billion) of its assets were derived from Asia as of end-June.