Allianz Real Estate Commits $600M To GLP’s China, Japan-Focused Funds

Allianz Real Estate, the real estate investment unit of German financial services provider Allianz Group, has committed US$600 million to the China and Japan-focused funds of GLP, said GLP in a statement released on Wednesday.

The funds will focus on developing and investing in logistics assets with integrated technologies in China and Japan, said GLP in the statement. GLP is a Singapore-based investment management firm that specializes in real estate and logistics technology investments.

"We continue to believe in the long-term fundamentals of the Asia-Pacific region. Logistics is a core part of our investment strategy and this opportunity will further diversify our portfolio," said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.

This investment is part of Allianz Real Estate’s strategy to grow its real estate exposure in the Asia-Pacific region. The company recorded a global portfolio of €63.5 billion (US$71.14 billion) with over €3 billion (US$3.36 billion) in the Asia-Pacific region and over €5.5 billion (US$6.16 billion) in logistics globally.

With €63.5 billion in assets under management, Allianz Real Estate is the strategic real estate organization within the Allianz Group that operates in five regions including West Europe, North & Central Europe, Switzerland, the United States, and the Asia Pacific.

"This partnership is a strong strategic fit, leveraging Allianz Real Estate’s reputation and history as an investment and asset manager for real estate, and GLP’s investment expertise, operational excellence and global scale," said Ming Mei, co-Founder and CEO of GLP. "We look forward to building our relationship with Allianz Real Estate across our markets."

GLP partnered with Singapore’s sovereign wealth fund GIC in September 2018 to launch a US$2 billion China-focused fund, which would primarily invest in China’s income-generating logistics facilities. In May 2018, GLP also established a RMB10 billion (US$1.47 billion) fund for the Chinese logistics sector. The company currently has US$64 billion in assets under management.