Allianz Real Estate India partners with Shapoorji Pallonji to set up $500-m fund
The deal by Allianz, a global real estate player, is the latest in a series of high-profile investments into Indian real estate by institutional investors this year.
The real estate arm of German insurer and asset manager Allianz has partnered with Shapoorji Pallonji Group to establish a fund worth USD 500 million, targeting the office market in India.
Real estate consultancy JLL advised Shapoorji Pallonji Group on the transaction.
“There has been increasing interest in Indian real estate opportunities and among international investors, pension funds and insurance companies who are keen on participating in the Indian growth story. The e-commerce sector is generating demand for both office space and logistics facilities, and the Indian government has laid out policies and incorporated various modifications in the last two and a half years to improve transparency in real estate along with making it easier for foreign capital to enter the Indian real estate market,” said Shobhit Agarwal, Head - Capital Markets, JLL India.
“Mumbai, NCR and Bangalore are the top three cities for investors. These cities have received more than two-thirds of total investments. Sector-wise, capital is going into office – core and core plus – and residential assets under development,” he says.
Rushabh Desai, CEO of Allianz Real Estate Asia Pacific, noted, “We are looking to deploy approximately 60 percent of our Asia-Pacific allocation to growth economies. The Indian economy has been consistently outperforming. Strong secular growth, stellar demographic trends, and improving transparency are supporting stable real estate occupiers as well as investor demand, in particular the office sector, which is ideal for global long-term investors like Allianz.”
The deal by Allianz, a global real estate player, is the latest in a series of high-profile investments into Indian real estate by institutional investors this year.Recent transactions include Singapore sovereign wealth fund GIC’s USD 1.4 billion joint venture with DLF Cyber City Developers for a portfolio of office and retail assets across India in August; Canadian Pension Plan Investment Board’s investment of USD 500 million in a joint venture with Indian property developer Indospace in May; and Blackstone’s investment into K Raheja Corp’s Mindspace business park portfolio in March.