Allianz has invested $384 million for a 49 percent interest in an office condominium in New York's iconic 30 Hudson Yards office building. Allianz has entered into a sale-leaseback agreement as part of a consortium alongside Related Companies and a third-party investor, who have acquired the remainder of the office condominium.
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30 Hudson Yards (Photo: Business Wire)
The acquisition, which has been completed by Allianz Real Estate on behalf of several Allianz group insurance companies, follows the purchase of a 44 percent stake in 10 Hudson Yards, the first tower completed in the Hudson Yards development on Manhattan's West Side, in mid-2016 for $420 million. The 30 Hudson Yards transaction will make New York the fifth most significant city for Allianz Real Estate, globally, in terms of total exposure.
The condominium in 30 Hudson Yards consists of 1,463,234 gross square feet across 26 floors. The 2.6 million square foot tower is the second-tallest office building in New York and home to the highest outdoor observation deck in the city. The 90-story, LEED CS Gold-certified building stands 1,296 feet tall and features river-to-river panoramic views, outdoor terraces, a triple-height lobby with a dramatic art installation by Jaume Plensa, direct access to restaurants and retailers and a concourse connection to the new Number 7 Subway Station.
The acquisition of the condominium interest in 30 Hudson Yards is the latest high-quality purchase by Allianz in the U.S. in cooperation with best-in-class partners. In 2018, Allianz Real Estate deployed $728 million in new equity transactions in the U.S., including the historic Ferry Building in San Francisco, 53 State Street in Boston and the Terminal Stores in New York City. At year-end, U.S. assets under management totaled a record $18 billion, including both equity and debt.
"We are delighted to announce this latest transaction in our key New York market, a deal that highlights our focus on prime assets and our commitment to working with exceptional partners such as Related, a market leader in environmentally conscious real estate development and operations. 30 Hudson Yards is a highly attractive investment opportunity on a long-term view, underpinned by a prime tenant and the very highest environmental and technical standards," said Christoph Donner, CEO, Allianz Real Estate of America.
"The U.S. continues to play an active, central role in our global diversification strategy, with our focus firmly on tier 1 cities such as New York, Boston and San Francisco. 30 Hudson Yards is a landmark asset in a city of iconic buildings, and we are truly delighted to seize this chance to further grow our U.S. equity portfolio on behalf of Allianz group insurances companies," said François Trausch, CEO, Allianz Real Estate. "We will continue to seek out additional opportunities."
The Allianz Group is one of the world's leading insurers and asset managers with more than 92 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world's largest investors, managing around $755 billion on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage more than $1.5 trillion of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2018, over 142,000 employees in more than 80 countries achieved total revenues of $147 billion and an operating profit of $12.9 billion for the group.
About Allianz Real Estate
Allianz Real Estate is the strategic real estate organization within the Allianz Group and a leading international real estate investment and asset manager. Allianz Real Estate develops and executes worldwide tailored portfolio and investment strategies on behalf of the Allianz companies, considering direct as well as indirect investments and real estate loans. The operational management of investments and assets is currently performed in 5 regions, West Europe (Belgium, France, Italy, Luxembourg, Portugal, Spain), North Central Europe (Austria, CEE, Germany, Ireland, Nordics), Switzerland, USA and Asia Pacific. The headquarters of Allianz Real Estate are located in Munich and Paris. Allianz Real Estate has approximately $71.2 billion assets under management.
Please note: Allianz Real Estate, 31/12/18 up to 30/06/18, data published included all commercial equity and debt real estate investments of the Allianz Group. With effect from 31/12/18, AUM aligned to Allianz Real Estate includes the portfolio overseen by Allianz Real Estate GMBH and its affiliates and excludes those managed by other parts of the Allianz Group.
These assessments are, as always, subject to the disclaimer provided below.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national and/or global level. Many of these changes can be exacerbated by terrorist activities.
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The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.
The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. Information is based on preliminary figures. Final results for fiscal year 2018 was released on March 8, 2019 (publication of the Annual Report).
This is a translation of the German Quarterly and Full Year Earnings Release of the Allianz Group. In case of any divergences, the German original is binding.
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