Chancery House is a c.150,000 sq ft prime asset in Midtown on a unique island site minutes from Chancery Lane underground tube station. Post refurbishment it will be TOG’s flagship asset in a market which is increasingly attracting a mix of businesses from the legal, media and digital sectors.
The financing of Chancery House is one of the latest deals to be completed through Allianz Real Estate’s Luxembourg-based debt fund, which was launched in 2018 to simplify access to European real estate debt investments for Allianz group insurers and third-party investors. The transaction means that the fund now has approximately EUR 2 billion in assets under management.
In Allianz Real Estate’s 2019 Cities That Work office market report, London was ranked fourth overall for core opportunities. Although investment volumes have dropped due to uncertainties surrounding Brexit, it remains one of the most liquid global investment markets. In H1 2019, London was Europe’s most active commercial property market. Allianz Real Estate has now established a four-strong debt team, covering both origination and local loan asset management, underlining the firm’s confidence in the city.
“The UK offers excellent opportunities for institutional debt investors on a select and disciplined basis. London is a leading global gateway city, with demand for prime assets that can be successfully repositioned to meet changing tenant demands,” said Shripal Shah, Head of Debt Origination - London, Allianz Real Estate. “Chancery House is a unique, landmark asset that complements our London portfolio and supports our aspirations for strong growth in the market in 2020 and over the long term.”
“We are delighted to continue to work with Blackstone and to further expand our European debt fund,” said Roland Fuchs, Head of European Debt, Allianz Real Estate.