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Allianz Real Estate sees global logistics portfolio increase 32% to EUR11.6 bil last year

By Atiqah Mpkhtar

/ EdgeProp Singapore |

March 9, 2022 10:48 AM SGT

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SINGAPORE (EDGEPROP) - Real estate investment manager Allianz Real Estate has seen its global logistics portfolio grow to EUR11.6 billion ($17.19 billion) in assets under management as at the end of last year, up 32% y-o-y.

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The firm’s logistics exposure comprises EUR8.6 billion in equity investment, an increase of 39% y-o-y and EUR3 billion in financing, up 15% y-o-y. Regionally, the firm’s portfolio split is EUR5.8 billion in Europe, EUR3.3 billion in the US and EUR2.5 in Asia Pacific.

“We established our global logistics portfolio early, and now have a leading market position in the sector,” says Kari Pitkin, head of business development Europe at Allianz Real Estate. Notable transactions by Allianz Real Estate in 2021 include EUR280 million in debt funding provided to real estate investment management advisor BentallGreenOak in September to support the development of a build-to-core portfolio of eight prime logistics assets in the UK.

Last December, Allianz Real Estate and logistics specialist VGP formed a 50:50 joint venture to develop a ortfolio of 90 prime logistics assets in around 25 strategic locations in Germany, the Czech Republic, Hungary and Slovakia over a five-year period.

Most recently, the firm announced the completion of a EUR290 million develop-to-core logistics vehicle focused on Grade A speculative assets in the UK in partnership with sector specialist AEW. It also intensified decarbonisation efforts last year: Last April, Allianz Real Estate announced an ESG (environmental, social and governance) programme aimed at reducing the carbon footprint of its global portfolio by 25% by 2025 and net zero by 2050.

Allianz Real Estate expects to further expand its logistics portfolio in 2022, ramping up its activity in Europe, the US and in the fast-growing Asia-Pacific region, all of which are benefiting from strong tailwinds engendered by its significant adoption of e-commerce.

Danny Phuan, head of acquisitions Asia Pacific at Allianz Real Estate, notes that the logistics sector has come out of the Covid-19 recession stronger than ever. “Outperforming all other sectors over a five-year period, the sector is expected to remain resilient in 2022 due to robust, persistent trends, including increased consumer delivery demand as well as supply chain re-configuration,” he adds.

Phuan continues: “With dense cities having scarce available land, an innovative approach to logistics will be required as we navigate 2022 and beyond. If the demand for last-mile facilities and land values remains high enough, we think multi-story warehousing may become more popular, as will mixed-use buildings with logistics included.”

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