Insurer Allianz has partnered with real estate manager AEW to launch a €290m develop-to-core UK logistics strategy.
The new venture, an Allianz-owned separate account vehicle managed by AEW, will focus on focused on funding speculative development units of 200,000sqft or larger in prime locations.
The venture is being managed by Allianz Real Estate on behalf of Allianz group insurance companies, who have committed the €290m.
In a joint announcement, AEW and Allianz Real Estate said they have already identified a number of potential opportunities with a primary focus on established core logistics locations throughout the UK.
Olivier Téran, Allianz Real Estate’s CIO, said: “With the favourable backdrop of limited availability and increasing tenant demand for larger format warehouses, AEW and Allianz Real Estate have identified a clear opportunity to build a portfolio of core assets in the UK.
“This new venture reflects Allianz’s focus on working with prime partners such as AEW and diversifying our portfolio with regards to the in-demand logistics sector.”
Nick Winsley, the head of investments at AEW UK Investment Management, said: “The timing is right to launch this develop-to-core strategy.”
“In a market where significant pools of capital continue to focus on a limited supply of investment stock or pre-let fundings, our strategy is to fund the development of larger buildings on a speculative basis.”