Allianz commits US$150 million to develop offices in India

Firm will develop office platform managed by Godrej Group, which targets development of Grade-A offices in tier one cities in India

Allianz Real Estate, acting on behalf of several Allianz companies, has committed US$150 million to a closed-end office development platform managed by the Godrej Group, a large business firm in India.

This investment is part of Allianz’s strategy to allocate 50-60% of its real estate exposure within the Asia-Pacific exposure to fast-growing markets such as China and India.

The platform, Godrej BTC (GBTC I), targets the development of premium Grade-A offices in tier one cities in India. It has secured two developments, one each in Mumbai and Gurgaon, totaling 2 million square feet and has a current pipeline of 1.3 million square feet in Bengaluru. Allianz, Godrej and a European pension manager will each own a third of the office development platform; Godrej Fund Management will act as the investment manager.

This transaction marks the expansion of Allianz’s real estate presence in India. In 2017, Allianz made its first investment in India by establishing an office investment platform with Shapoorji Pallonji, which was followed by a logistics development venture with ESR in 2018.

“We continue to believe in the long-term growth prospects of the Indian economy. Strong demographic trends and improving transparency are supporting real estate occupier as well as investor demand, in particular the office sector, which is ideal for long-term institutional investors such as Allianz,” says Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.

“We are pleased to partner with Allianz Real Estate on our office development platform, GBTC I. GFM’s unique blend of strong development management and investment management capabilities positions us well to deliver on the opportunity to develop and manage world class Grade - A office assets across India,” says Karan Bolaria, managing director & CEO, Godrej Fund Management.

Allen & Gledhill, Khaitan & Co, Ernst & Young and AECOM acted as advisers to Allianz.

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Date

13 Aug 2019

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