Allianz Real Estate arrives to Spain
The German insurance group Allianz has announced recently the strategic decision of bringing to Spain its real estate.
Allianz Real Estate has launched with the aim of piloting the portfolio of investments owned by the German entity in real estate in Spain and Portugal. The group has placed Miguel Torres, the managing director of GE Capital Real Estate in Mexico, at the helm of the project. He has managed previously positions at GE in Madrid, New York and Stamford, and has 20 years of experience in the real estate sector.
The implementation in Spain of Allianz Real Estate coincides with the launch of an expansion plan of the group that expects to increase its managed business up to 60,000 million euros in 2018, which will represent an increase of 43% since 2015.
Allianz Real Estate is headquartered in Munich and Paris and has presence all over the world, although the lending activity is located in Europe and the United States. Allianz’s entry into the Spanish and Portuguese real estate sector comes after these markets have become the focus of institutional investors, according to François Trausch, CEO of Allianz Real Estate. The investment aspiration of Allianz includes the sector almost in its entirety: take part in debt, direct and indirect positions in financing and build a relevant real estate portfolio.
The real estate sector in Spain is presenting itself as the alternative that offers greater returns in relation to the safety of its operations. The high expectations of office revenue growth and a notable increase in the number of small operations make this segment of the market one of the most attractive options. In the case of the most leading buildings and located in prime areas, revenues could increase to 22% over the next three years. For the rest of the more modest assets, the annual yield is around 7%. Also, commercial premises are moving at a profitability of 7.5%, and an average expected increase of incomes over the next two years of 2.4% per year in Madrid.