Allianz Real Estate, the international real estate division of Allianz Group with €30bn in assets under management, has committed to invest €140m in IPUT, the unlisted debt-free property fund in Ireland.
The new capital is evidence of IPUT’s stated ambition of internationally diversifying its sources of capital as the regulated fund seeks to capitalise on Dublin’s enduring competitive prime office income yields.
IPUT currently manages a 92-strong portfolio, valued at more than €1bn, including 43 prime office property in Dublin’s central business district valued at €775m.
Once Allianz’s capital is deployed, IPUT’s funds under management will swell to €1.2bn.
In the last 18 months, IPUT has invested €515m of capital in the Dublin office market including buying the 13-strong institutional-grade Salix portfolio for €115m from the Bank of Ireland Staff Pension Fund last month.
In a statement, Charles Pridgeon, chief investment officer at Allianz Real Estate, said: “As the economic recovery in Ireland takes hold, supporting improving demand particularly in the domestic economy, we see the potential for strong long term income returns at attractive levels for our stakeholders.
“IPUT’s long term investment strategy and approach coincides with our own and we are looking forward to an ongoing and mutually beneficial relationship in the interests of our respective stakeholders.”
Niall Gaffney, CEO at IPUT added: “We are delighted that Allianz has chosen IPUT to partner on its first investment in real estate in Ireland. It is very encouraging that global groups of the standing of Allianz are selecting IPUT as their investment fund of choice in this market.
“It also supports our corporate strategy to diversify IPUT’s shareholder base from pure Irish domestic pension funds to a broader audience of international institutional investors.”
Earlier this summer, German fund Union Investment Group was also in discussions to invest in IPUT, while the Irish fund already includes allocations by the £254.6m Aviva Investors European Property fund and US pension fund clients of CBRE Global Investors.
Gaffney added: “This investment in IPUT coincides with a period when interesting opportunities of institutional-grade quality are starting to materialise in the Irish market. As long term investors, IPUT will continue to take a pragmatic and strategic approach to the opportunities we pursue.”
Back in July, former NAMA director John Mulcahy joined IPUT as as a non-executive director of the board with a remit to attract and retain international fund investors.