Allianz to Buy German Mall for $408 Million
Allianz Real Estate is planning to buy the Koe Galerie shopping mall in Dusseldorf from Blackstone Group for €300 million ($408 million), according to Bloomberg
Allianz, the real estate investing arm of Europe's largest insurer, will acquire 20,000 square meters (215,000 square feet) in retail space and 30,000 square meters of office space, Bloomberg
reports, citing unnamed sources.
Blackstone owns an 88 percent stake in the shopping mall, after acquiring it from Merrill Lynch. German shopping mall operator ECE Projektmanagement owns the rest.
Insurers are increasingly buying property to increase returns, as profits from bonds decrease due to low interest rates, analysts say.
In December, Allianz purchased a 49 percent stake in five shopping centers
in France for €395 million.