Despite having €10bn to €15bn to spend on property, German insurer Allianz is waiting forproperty prices to fall further.
In an interview with EuroProperty, real estate arm chief executive Olivier Piani said: “Prices will be lower six months from now. We have no incentive to be the first one. We have the time to waitbecause we are investing cash from the insurance business.”
Piani unveiled Allianz Real Estate’s spending plans at Expo RealinMunich lastOctober. Under Piani, who became CEO last year, Allianz‘onlyinvestment has beena 50%-stake in One Beacon Street, Boston, Massachusetts, US.
In Europe, Allianz Real Estate is looking at a number of opportunitiesin France and Germany. Piani, however, questioned conventional wisdom that the UK property market offers the best value for money.“The least bad, or dangerous, is continental Europe,” he said. “The UK is hardest hit in pricing but it was also the most aggressive in pricing. So you need to look over time what that means.
“[The UK] is also going to be hit on the economic side. France and Germany saw less of hike, so there has been not as much repricing. They might be less hurt in a downturn.”
Allianz Real Estate wants to invest more in retail assets, mainly shopping centres. Piani said Allianzwould be looking to partner with developers or investors who can asset-manage the shopping centres.
“Investing in retail is something we should do,” he said. “It has been difficult in the past five to 10 years because markets were dominated by few players, but now the big shakedown is going to create opportunities.”
