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Sign in Sign up for a FREE subscriptionAllianz, TH Real Estate to raise $750m for China outlet mall fund
Allianz and TH Real Estate have set up a $750 million fund, ERES APAC II – China Outlets, a core-plus and closed-ended U.S.-denominated fund that will invest in premier outlet malls in China.
“China is becoming a commercial and consumer-friendly economy,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate. “In addition to classic retail outlets, outlets have become established as an attractive format for shoppers looking for branded products at reduced prices.”
The fund is to be established by Allianz’ real estate investment arm Allianz Real Estate. It is part of Allianz’ strategy to allocate around 5 percent of its global real estate portfolio to Asia Pacific.
Allianz will own 30 percent of the platform and the remainder will be held by institutional investors. TH Real Estate will act as the fund manager and RDM Asia, a company of the Italian Fingen Group, will manage the assets.
The new fund aims to raise the target commitments in
