Allianz and Heimstaden Bostad, one of Europe’s leading residential real estate companies, have formed a new joint venture comprising Allianz’s German residential real estate portfolio. Allianz Real Estate is managing the joint venture on behalf of Allianz. The transaction, which will see Heimstaden Bostad invest EUR 243 million to become a partner in the joint venture, is conditional upon merger clearance by the German Federal Cartel Office and is expected to be completed in December 2022.
The new joint venture comprises 38 properties with 3,135 homes located in Düsseldorf, Munich, Cologne, Bonn, Berlin and Stuttgart with a current occupancy of 97%. Looking ahead, the ambition is for Allianz Real Estate and Heimstaden Bostad to jointly implement and accelerate a sustainability program within the portfolio, with EUR 83.9 million to be committed to ESG improvements focused on energy optimization to ensure alignment to the CRREM decarbonization pathway. Allianz Real Estate has committed to decarbonize its global real estate portfolio by 25% by 2025 and to be net-zero by 2050.
The Germany joint venture is the second such partnership between Allianz and Heimstaden Bostad, following the firms’ joint venture in Sweden, launched in December 2021, whereby Allianz bought into a 99-asset residential portfolio managed by Heimstaden Bostad.
Nicole Pötsch, Head of Investments & Strategic Development for North & Central Europe, Allianz Real Estate, said: “After a successful cooperation in the first year in Sweden, we are very pleased to further expand our partnership with Heimstaden Bostad into Germany. With two experienced, likeminded partners working together, we are well positioned to deliver the ESG improvements needed to meet our decarbonization targets.”
Christian Fladeland, Chief Investment Officer at Heimstaden, said: “We are happy to join forces once again with Allianz, a partner who matches our ambitions and commitment to responsible and sustainable housing. Together we create a strong voice in the residential real estate sector, and we look forward to working with Allianz Real Estate in strengthening our German footprint, adding new, strategically important locations to our portfolio.”
The residential sector remains a key focus within Allianz Real Estate’s investment strategy due to its underlying resilience and demand-supply imbalance. Recent milestones include the launch of the construction of a new residential development in Dublin, as well as portfolio acquisitions in Japan, through the firm’s Japan Multi-family fund, and Madrid. As of Q3 2022, Allianz Real Estate’s global residential assets under management reached EUR 12 billion, of which EUR 7.2 billion is in Europe.
