Allianz has sold a portfolio of German property to IVG Immobilien AG for around €1.3 billion. The portfolio comprises several buildings currently occupied by Allianz, which the Group will lease back and continue to use as before.
This transaction enables Allianz to optimize its real estate assets. Currently, 85% of the property owned by German Allianz insurance companies is still located in Germany. The sale of this tranche of properties enables the Group to take a significant step away from its over-concentration on office buildings in Germany toward a more diversified and international real estate portfolio.
The Group is also currently considering the sale of a second tranche of properties, as the current market situation is particularly favorable to such sales.
Over the next few years, the Allianz Group wants to increase its real estate assets from today's figure of 3% of total assets to around 7% of the total. It will also pursue an active asset management strategy that includes sustainable new investment in Germany.
The portfolio to be sold to IVG comprises Allianz office buildings in Frankfurt, Hamburg, Neuperlach (Munich), Unterföhring and Stuttgart. The value of the sale is around €1.3 billion. The transaction is not linked to the reorganization of Allianz, and the company's employees will be unaffected by the changes.
In IVG, Allianz has acquired an excellent, internationally oriented partner with specialist competence that manages a real estate portfolio of over €19 billion. Long-term leases have been signed for all the buildings, and both contracting partners have committed to a long-lasting partnership.