KaiLong鈥檚 second greater China commercial real estate fund, which plans to raise $500m (鈧�431.5m), has received $175m from Allianz Real Estate.
Allianz said it will take a 35% share 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. The remaining interest in the KGCREFII fund will be held by like-minded long-term institutional investors, Allianz said.
The 鈧�60bn real estate investment and asset manager within the Allianz Group said the latest deal forms part of its strategy to allocate around 10% of its global real estate portfolio to the Asia Pacific region.
Rushabh Desai, the Asia-Pacific CEO of Allianz Real Estate, said: 鈥淲e are looking to deploy approximately 50-60% of our Asia-Pacific allocation to growth economies.
鈥淪trong secular growth, continued urbanization, the transition to a service-oriented economy, and improving transparency are supporting stable real estate occupiers as well as investor demand in China.鈥�
Real estate asset manager KaiLong was founded in 2004. KaiLong launched its maiden US dollar fund with a final close of $238m in May 2015.
Hei Ming Cheng, the chairman and CEO of KaiLong Group, said, 鈥淲e view this partnership with Allianz as the first step in a relationship which will focus on creating long-term value for investors and will be supported by KaiLong鈥檚 substantial credentials and experience in delivering and managing real estate assets across the Greater China market.鈥�
