Acting on behalf of several Allianz entities, Allianz Real Estate has closed the financing for the Liffey Valley Shopping Centre in Dublin. Allianz is the sole lender and provided a 7-year fixed rate loan at an attractive all-in rate and a conservative LTV. With this investment, Allianz has again emphasized its strategic focus on alternative investments such as infrastructure and real estate.
The long term loan of over €290 million was made via Universal Investment, Germany's leading real estate master KVG platform for institutional investors, on behalf of German pension fund BVK Bayerische Versorgungskammer. Hines, who sold Liffey Valley to BVK in 2016, continues to act as the asset and development manager.
"Ireland has provided attractive opportunities for Allianz through real estate investments in a short period of time," said Roland Fuchs, European Head of Real Estate Finance at Allianz Real Estate. "A combination of the Liffey Valley loan, our direct investment in Dundrum Shopping Centre and the €150 million loan for a Dublin portfolio of 11 office and one residential building made in 2015, has resulted in Ireland becoming a notable part of our portfolio. "
Allianz Real Estate's commercial real estate lending portfolio is currently focused on Europe and the US and totals just over €15 billion. In the USA, Allianz has been providing real estate loans for more than 30 years and its credit portfolio there currently exceeds €10 billion. The European lending book was started in 2011 and reached the €5 billion mark in Q1 2017.
Allianz Real Estate looks at European financing opportunities in the same way that it considers direct and indirect acquisitions. The focus is on large, conservative and long term tickets with a preference for core and core plus properties in the retail, office and logistics sectors. Loan periods are 7–20 years with a loan-to-value ratio of 50–70%. The preferred financing volume is between €100 million and €300 million.
Liffey Valley is one of Dublin's leading regional shopping centers with over 100 shops, restaurants, a multiplex cinema and ca. 3,600 parking spaces. Over the last few years significant improvements have been made to Liffey Valley, including the opening in 2016 of the Western End extension anchored by a new Penneys Store ("Primark"), six restaurants, a new external facade and a totally refurbished VUE cinema, the largest in Ireland. After the new development, Liffey Valley now comprises over 72,000 sqm, incl. owner-occupied units Marks &Spencer and Dunnes Stores, with an annual footfall of 10 million visitors.