Ending a strong year in countries such as America, Singapore, Europe, etc. Allianz Real Estate (ARE) has extended its growth vision for 2019. Bringing ASEAN countries on the radar, the group is vehemently moving towards acquiring the South- East Asian region.
The Allianz Real Estate group has started exploring investment opportunities in Thailand, Malaysian property markets, leveraging on its hold in these markets. The group has recently acquired 20 percent stake for S$537.3 million in Ocean Financial Centre, Singapore.
The Asia-Pacific CEO of the property investment arm of global insurance tycoon Allianz, Rushabh Desai, said in a recent interview “We would like to explore Thailand, Indonesia, and Malaysia as a start … because Allianz has fairly fast-growing insurance businesses there which are now of a sizeable presence. As a result, we can leverage on their presence – their relationships, understanding of regulations – to see if we can invest in real estate in these three countries.”
The group is exploring logistics, corporate, and retail real estate to procure “fast-growing consumption stories” in these three countries.
ASEAN has currently only been active in Singapore, with its expansion objective. It has an aim to internally proliferate, and continue seeking sustainable opportunities in Singapore.
The group views Asia-Pac as a long-term target acquiring for 10 percent, with the US accounting for 20 percent, and Europe for 70 percent.
“We have to keep in mind that Allianz is an insurance company with a majority of its liabilities in Europe. So Europe will always be core to what we do in terms of the real estate investing,” says Mr. Desai.
In accord, the group has recently acquired two development offices in Prague.
No, just expanding their user-base, the firm is all set to overthrow its existing business model. Previously investing on behalf of insurance companies, the company will extend its investment options to the third-party. The capital model will aggravate across geographies, as well as real estate investment.
Why is Allianz Real Estate targeting Asia-Pacific region?
Two markets- China and India, along with other ASEAN regions (excluding Singapore) are what Mr. Desai terms as “fast-growing economies”. He prospects to invest 40 percent in China, and 15 percent in India from the estimated three-billion-euro NAV, 2018.
Will the expansion benefit India?
The efficient movement of commodities, and services with the introduction of Goods and Service Tax in 2017, has resulted in differentiated logistic space. “Post-GST, a large number of foreign investments have been announced in the Indian logistics space, which in turn is helping to institutionalize this asset class,” said Mr. Desai. The group focuses on office, and logistics sector to sustain its property investing strategy in the Asia-pacific for 2019.
The group has been on a growth spree both in its main operating country, Europe, and other potential regions such as ASEAN. The coming year will bring wider regional influence and capitalization for Allianz Real Estate.