Allianz and Barings Provide $319 Million in Debt Financing to Support the Acquisition of 650 Townsend in San Francisco

NEW YORK & CHARLOTTE, N.C.--()--Allianz Real Estate, ranked as the world’s largest real estate investor, and Barings, one of the world’s leading financial services firms, announced today that they have co-committed a total of $319.1 million (EUR282 million) in debt financing under a co-lending agreement to fund the acquisition of 650 Townsend, a premier creative office building in San Francisco. The asset is being acquired through a sale-leaseback arrangement with the major tenant.

Barings, who arranged the financing on behalf of an institutional investor, will be the lead lender and administrative agent for the transaction, with Allianz co-investing on a pari passu basis.

“The debt financing of 650 Townsend demonstrates Barings’ ability to identify attractive debt investment opportunities across all property sectors and reflects our confidence in the long-term growth of San Francisco, especially as new development opportunities remain limited,” said Dan Hartley, Head of Real Estate Debt Origination in the U.S. at Barings. “We are excited to partner with Allianz on this transaction and showcase Barings’ ability to provide creative financing solutions to strong sponsors that own high quality real estate.”

“We are delighted to announce this latest transaction, a compelling opportunity to expand in the highly attractive San Francisco office market, which has grown significantly in recent years as a result primarily of the booming technology sector,” said Christoph Donner, CEO, Allianz Real Estate of America. “650 Townsend is one of San Francisco’s distinctive office properties in a vibrant, 24/7, ‘Live, Work, Play’ environment that attracts and retains employers and professionals alike. This new transaction also enables us to deepen our existing relationships with prime partners such as CalSTRS, Beacon Capital Partners and another institutional investor.”

650 Townsend is located at the crossroads of San Francisco’s SOMA and Showplace Square Districts. The six-story property features 685,000 square feet of flexible office space, multiple atriums and unrivalled tenant amenities including two onsite cafeterias, a basketball court, gym, a theatre, on-site retail facilities and numerous collaborate workspaces.

Built in 1990, the building was renovated in 2011 and 2018 and was awarded LEED Gold status in 2017. It is currently leased to a strong line-up of tenants anchored by high-profile technology firms. The asset has benefitted from significant capital investment, with over $115 million in work completed or in progress since 2012.

About Allianz
The Allianz Group is one of the world's leading insurers and asset managers with more than 92 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 673 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage more than 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2018, over 142,000 employees in more than 80 countries achieved total revenues of 131 billion euros and an operating profit of 11.5 billion euros for the group.

About Allianz Real Estate
Allianz Real Estate is the strategic real estate organization within the Allianz Group and a leading international real estate investment and asset manager. Allianz Real Estate develops and executes worldwide tailored portfolio and investment strategies on behalf of the Allianz companies, considering direct as well as indirect investments and real estate loans. The operational management of investments and assets is currently performed in 5 regions, West Europe (Belgium, France, Italy, Luxemburg, Portugal, Spain), North & Central Europe (Austria, CEE, Germany, Ireland, Nordics), Switzerland, USA and Asia Pacific. The headquarters of Allianz Real Estate are located in Munich and Paris. Allianz Real Estate has approximately 63.5 billion euros assets under management.

Please note: Allianz Real Estate, 31/12/18 up to 30/06/18, data published included all commercial equity and debt real estate investments of the Allianz Group. With effect from 31/12/18, AUM aligned to Allianz Real Estate includes the portfolio overseen by Allianz Real Estate GMBH and its affiliates and excludes those managed by other parts of the Allianz Group.

About Barings
Barings is a $317+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific. Learn more at www.barings.com.

*As of March 31, 2019

About Barings Real Estate
Barings Real Estate offers a broad range of global investment opportunities across the public and private debt and equity investment markets. We invest in all major property sectors and offer a broad range of financing solutions to real estate borrowers. We also specialize in providing government and government-sponsored entity lending products through our wholly owned subsidiary, Barings Multifamily Capital. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.

These assessments are, as always, subject to the disclaimer provided below.

Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

No duty to update
The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.

Other
The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. Information is based on preliminary figures. Final results for fiscal year 2018 were released on March 8, 2019 (publication of the Annual Report).

This is a translation of the German Quarterly and Full Year Earnings Release of the Allianz Group. In case of any divergences, the German original is binding.

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Contacts

Allianz enquiries:
Claire Fraser
+49 89 3800 8236
+49 175 321 5732
claire.fraser@allianz.com

Padilla (US):
David Heinsch
O: 612 455 1768 / M: 612 802 9024
David.Heinsch@padillaco.com

James Walker
O: 612 455 1749 / M: 651 230 7401
James.Walker@padillaco.com

Citigate Dewe Rogerson (UK):
Oliver Parry / Hugh Fasken / Emma Maynard
+44 (0)20 7025 6400
AllCDRUKAllianzRealEstate@citigatedewerogerson.com

Barings:
Kelly Smith
+1 980-417-5648
kelly.smith@barings.com

Rachel White
+1 980-417-5886
Rachel.white@barings.com

Contacts

Allianz enquiries:
Claire Fraser
+49 89 3800 8236
+49 175 321 5732
claire.fraser@allianz.com

Padilla (US):
David Heinsch
O: 612 455 1768 / M: 612 802 9024
David.Heinsch@padillaco.com

James Walker
O: 612 455 1749 / M: 651 230 7401
James.Walker@padillaco.com

Citigate Dewe Rogerson (UK):
Oliver Parry / Hugh Fasken / Emma Maynard
+44 (0)20 7025 6400
AllCDRUKAllianzRealEstate@citigatedewerogerson.com

Barings:
Kelly Smith
+1 980-417-5648
kelly.smith@barings.com

Rachel White
+1 980-417-5886
Rachel.white@barings.com