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CoStar Interview: Allianz’s Roland Fuchs on investor appeal of defensive prime debt

Demand for long-term income streams offered by real estate debt prevails over short-term volatility brought on by Covid-19, the firm’s head of European real estate finance tells CoStar News
By Alicia Villegas
CoStar News
May 28, 2020 | 1:19 P.M.

Despite Covid-19 disruption, Allianz Real Estate has secured its first third-party investor for its Luxembourg-based debt platform. German pension fund Bayerische Versorgungskammer (BVK) will co-invest with a €300m (£269m) stake in a sub-fund valued at €1.2bn alongside Allianz. The debt platform, which has already deployed and committed about €3bn, was created in mid-2018 with the initial aim to pool capital from Allianz group insurance companies and then invite external investors to commit capital to its property lending strategy. The fund is targeting an average return of 2% and its strategy consists in deploying 70% of capital in fixed-rate prime loans priced from 1.25% to 1.75%, with the remaining 30% in enhanced loans with margins ranging from 2% to 4% financing transitional and construction assets.

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