Allianz provides its first PRS financing with GBP 140m green loan in London

Munich / Paris / London, 05/06/2021

Allianz Real Estate, acting on behalf of several Allianz group companies, has provided GBP 140 million (EUR 161 million) in debt funding to Canary Wharf Group (CWG) for the financing of 10 George Street in Canary Wharf, London. The 10-year, fixed-rate loan – structured with an initial 7-year term with three 1-year extension options – marks Allianz Real Estate’s first single-asset Private Rental Sector (PRS) debt transaction in Europe.

© Canary Wharf Group

© Canary Wharf Group

 

Located in Canary Wharf, one of London’s most prominent mixed use developments, the prime asset offers a net rentable area of 224,039 sq ft, 327 residential units and three retail units. With direct access to Central London, the building benefits from excellent transport connectivity, which is set to further improve with the opening of the Elizabeth line in 2022.

The 35-floor high rise building puts tenant well-being front and center, providing residents amenities including 24/7 concierge service, gym, communal spa, dining room and bar areas. It is energy efficient – with features including photovoltaic power collection and automatically controlled high-efficiency lighting – and has achieved BREEAM ‘Excellent’ accreditation and Code of Sustainable Homes certificate, and is fully aligned to the CRREM carbon reduction pathway for residential buildings.

Sustainability sits at the core of Allianz Real Estate’s business strategy, as it does for CWG, making it an excellent partner for the firm. CWG is an industry leader in sustainability, with over 11 million sq ft of sustainably certified buildings. Since 2012, the Group has purchased 100% renewable electricity for its Estate and has sent zero waste to landfill since 2009. The loan also meets all the necessary Loan Market Association requirements to be classified as a green loan.

The financing of award-winning 10 George Street from Vertus, CWG’s build-to-rent leasing arm, marks the firm’s eighth debt transaction in London, bringing the value of the firm’s debt book in the city to almost EUR 2 billion. London sits alongside Paris and Munich as Allianz Real Estate’s third hub for the firm’s pan-European debt program.

 

Roland Fuchs

Roland Fuchs, Head of European Real Estate Financing at Allianz Real Estate

“We are delighted to be expanding our European debt portfolio with such a high-quality prime asset, and with a likeminded partner who supports our commitment to leading the international real estate market in terms of ESG and sustainability. This transaction also provides us with a strong opportunity to further diversify of our European loan book through exposure to the dynamic PRS market,” said Roland Fuchs, Head of European Real Estate Financing, Allianz Real Estate.

“This latest deal reaffirms our commitment to the London market, which continues to offer strong investment opportunities in select sectors,” said Shripal Shah, Head of Debt Origination - London, Allianz Real Estate. “10 George Street offers great value, high-quality residential units for rent in an excellent location – a strong addition to our UK loan book and outstanding investment for our clients.”

Neil Kermode, Director, Canary Wharf Group, said: “The emergence of Private Rental Sector has proved to be an excellent asset class. The premium offer at 10 George Street from Vertus with its fantastic amenities coupled with high sustainability standards is very appealing to investors. 10 George Street is aimed at people wanting to rent on the Estate and enjoy all that Canary Wharf has to offer as the 24/7 sustainable city where people can work, live and play.”

10 George Street was voted no.1 build-to-rent development by residential development review website Homeviews in 2020 and no.1 in its top 20 list of tall buildings in the New London Architecture’s (NLA) London Tall Buildings survey.  

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Phillip Lee
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