S Korea’s NPS inks $2.3b JV with Allianz for Asia Pacific realty investments

The logo of the National Pension Service (NPS) is seen at its branch office in Seoul, South Korea, November 4, 2016. REUTERS/Kim Hong-Ji/File Photo

Allianz Real Estate, the realty investment arm of German insurer Allianz, has formed a $2.3-billion strategic partnership with South Korean pension manager National Pension Service (NPS) to invest in a diversified portfolio of properties in the Asia Pacific region.

The joint venture will operate a Singapore-domiciled, closed-end fund – Allianz Real Estate Asia-Pacific Core I (AREAP Core I) – that will have an investment capacity of over $4.6 billion.

The companies will be 50:50 investors in the fund. Allianz Real Estate will serve as the investment manager and general partner of the venture, according to the announcement.

The venture will focus on Japan, Australia, Singapore, Hong Kong, and China, and seek core investment opportunities across office, logistics, multi-family, and student housing sectors.

The partnership will give NPS, the world’s third-largest pension fund, access to investment opportunities in the region, said NPS chief investment officer Hyo-Joon Ahn.

“This partnership represents an excellent opportunity to expand our exposure to quality assets in the Asia Pacific region through a co-investment with a like-minded institutional investor like Allianz,” he added.

The partnership comes as Allianz Real Estate continues to expand its portfolio in Asia, with its assets under management (AUM) in the region reaching 5.5 billion euros ($6.5 billion) as at the end of 2019, an 83 per cent rise from a year earlier.

A significant number of Allianz Real Estate’s largest deals in 2019 took place in the Asia-Pacific region, including the 100 per cent acquisition of a 1.1 billion euro ($1.3 billion) portfolio of core multi-family residential assets in Japan, as well as a 60 per cent stake in DUO Tower, a marquee commercial development in Singapore.

“Asia-Pacific continues to offer outsized growth prospects with individual markets operating at varied pace, offering an opportunity to build a diversified portfolio within the region,” according to Allianz Real Estate’s Asia Pacific CEO Rushabh Desai.

Globally, the firm’s AUM reached a record 73.6 billion euros ($84 billion) in 2019, up 16 per cent year-on-year.

NPS, on the other hand, recorded assets under management at 743 trillion won ($628 billion) as of January 31, 2020. Its alternative portfolio, including real estate, accounted for about 11.6 per cent of the total assets.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.