Allianz invests in KaiLong’s second Greater China real estate fund

Allianz has plans to invest in KaiLong Greater China Real Estate Fund II (KGCREFII), a closed-ended fund targeting value-add commercial real estate opportunities in China and Hong Kong. Allianz will take a 35 percent share in the fund, with the remaining being held by like-minded, long-term institutional investors. KaiLong is targeting to raise $500 million in equity for the fund.

The transaction was conducted by Allianz Real Estate, the real estate investment and asset manager within the Allianz Group, on behalf of several Allianz companies. This deal forms part of Allianz’s strategy to allocate around 10 percent of its global real estate portfolio to the Asia Pacific region.

“We are looking to deploy approximately 50 percent to 60 percent of our Asia-Pacific allocation to growth economies. Strong secular growth, continued urbanization, the transition to a service-oriented economy, and improving transparency are supporting stable real estate occupiers as well as