22 November 2017
Singapore
Reporter: Theo Andrew

Allianz anchors $750 million China outlet mall fund


Allianz Real Estate and TH Real Estate have joined forces to create a $750 million fund targeting outlet malls in China.

The fund, ERES APAC II - China Outlets, will be 30 percent anchored by Allianz and backed up by investors including TH Real Estate, who will act as the fund’s manager.

According to Allianz, the fund is part of the firm’s diversification strategy, including allocating 5 percent of its global real estate portfolio to the Asia Pacific (APAC) region.

In August, Allianz partnered with Keppel Group to acquire Shanghai's Hongkou SOHO for $525 million, investing in the Alpha Asia Macro Trends Fund III.

ERES APAC II - China Outlets will initially acquire two outlets, Florentia Village, between Tianjin and Beijing, and Florentia Village, Shanghai. It has a number of additional assets in the pipeline.

The deal is an extension of the relationship between Allianz and TH Real Estate, which established a similar European platform in 2004 and a UK platform in 2008.

TH Real Estate currently has $2.4 billion in assets under management in the Asia Pacific (APAC) region. RDM Asia will manage the assets.

Rushabh Desai, APAC CEO of Allianz Real Estate, said: “China is moving towards a services- and domestic consumption-led economy. Alongside the traditional ‘bricks and mortar’ retail formats, outlet malls have been successful in attracting buyers looking for branded products at discounted prices.”

Chris Reilly, managing director for APAC at TH Real Estate, added: “The success of this first close demonstrates the wide appeal of our China Outlet Mall strategy, offering investors an exclusive opportunity to invest in premier designer outlet malls in China. We have seen this niche sector continue to gain in popularity with China’s brand conscious consumers.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Standard Chartered boosts CRE team
11 December 2017 | Singapore | Reporter: Stephanie Palmer
Standard Chartered has named Steven Cranwell as global head of commercial real estate for its global banking business
SoftBank and Compass in ‘largest ever’ US real estate tech investment
08 December 2017 | New York | Reporter: Stephanie Palmer
Real estate technology firm Compass has won $450 million in investment from the SoftBank Vision Fund, in what Compass has called the largest ever real estate technology investment deal in US history
Tristan fund makes first foray into Germany
07 December 2017 | Bonn | Reporter: Stephanie Palmer
The CCP 5 long-life fund, a core-plus fund advised by Tristan Capital Partners, has made its first investment in Germany, acquiring an office complex in Bonn for €35 million
JLL develops UK corporate solutions team
07 December 2017 | London | Reporter: Stephanie Palmer
JLL has named Sue Asprey Price as lead director of its corporate solutions business in the UK, with immediate effect
Link Asset Services appointed as real estate fund administrator
06 December 2017 | London | Reporter: Stephanie Palmer
Warehouse REIT, a specialist warehouse investor managed by Tilstone Partners, has selected Link Asset Services for fund administration
Dutch portfolio sold for €200 million
05 December 2017 | Amsterdam | Reporter: Stephanie Palmer
Patrizia Immobilien AG has sold a portfolio of 61 residential properties in the Netherlands, for around €200 million
Allianz tops off bumper 2017 with Broadway acquisition
04 December 2017 | New York | Reporter: Stephanie Palmer
Allianz Real Estate has acquired a 43 percent stake in 1515 Broadway, New York, a class-A building valued at $1.95 billion