Allianz Real Estate brings on BVK to co-invest in debt fund

Allianz Real Estate has secured its first third-party client for its Luxembourg-based debt fund (PAREC), the firm announced on May 28.

The client is German pension fund Bayerische Versorgungskammer (BVK), which will co-invest with a €300 million ($329 million) stake in a €1.2 billion ($1.3 billion) sub-fund alongside Allianz.

PAREC was launched in 2018 to simplify access to European debt investments for Allianz group insurance companies. At the end of 2019, the fund had nearly €3 billion ($3.3 billion) in assets. Following Allianz’s European debt business, the fund will invest in the highest-quality real estate debt, with senior core and core-plus assets located in prime locations in first-tier European cities, said Allianz.

Allianz said the firm has made the development of its third-party business a key priority as of late. While Allianz has a long-standing relationship with BVK, the new partnership is expected to accelerate demand from other large inst