Manulife Asset Management Private Markets has entered a partnership with German insurance giant Allianz to co-invest up to $1 billion in U.S. real estate. As part of the arrangement, John Hancock Read Estate — the U.S. real estate unit of Manulife Asset Management Private Markets — has sold a majority interest in two of its class A office assets to Allianz. Manulife will seek to invest in additional high quality office properties in the U.S.
Manulife Asset Management Private Markets, the private asset management arm of Manulife (TSX, NYSE: MFC), today announced that it has entered into an arrangement with Allianz, a leading Germany-based insurance and asset management company, to co-invest up to $1 billion in U.S. real estate.
As part of the co-invest, John Hancock Real Estate – the U.S. real estate unit of Manulife Asset Management Private Markets – has sold majority interests in two of its class A office assets to Allianz: 1100 New York Avenue in Washington, DC and 191 North Wacker Drive in Chicago, IL. Manulife will maintain a partial interest and continue to manage both assets through its vertically integrated platform. In partnership with Allianz, Manulife will seek to invest in additional high quality office properties in U.S. gateway cities.
“Manulife is pleased to be partnering with Allianz—a highly-regarded and established institutional investor that is very much aligned to our long-term investment philosophy,” said Kevin Adolphe, President and CEO of Manulife Asset Management Private Markets. “This partnership reflects how our experienced teams work with investors to provide unique opportunities to meet their investment goals. We look forward to growing our relationship with Allianz in the years to come.”
“We are excited to start our partnership with Manulife, a like-minded, best-in-class real estate investor,” said Christoph Donner, CEO of Allianz Real Estate of America. “Allianz has ambitious goals to continue to expand its real estate presence in the U.S., and we are pleased to do so with 1100 New York Avenue and 191 North Wacker Drive, two buildings that represent the type of high quality assets in which we seek to invest.”
Manulife recently expanded its global third party private asset management business by extending the benefit of the company’s expertise in specialized private asset investments to external institutional investors. Manulife’s Private Markets group brings together a diverse range of private asset classes, including: commercial real estate, timberland and farmland, renewable energy, oil and gas, private equity and mezzanine debt. Manulife Asset Management Private Markets also partners with Manulife’s specialized private asset investment teams to invest in private placement debt and commercial mortgages.
About John Hancock Real Estate
Operating as John Hancock Real Estate in the U.S. and Manulife Real Estate in all other parts of the world, we are the global real estate arm of Manulife, and are a unit of Manulife Asset Management Private Markets. John Hancock Real Estate has fully integrated in-house capabilities and 70 years of experience as an active investor, owner, developer and asset manager of commercial real estate. As at September 30, 2014, the portfolio totaled more than 40 million square feet with a market value of US$10.4 billion (CA$11.7 billion). Additional information can be found at johnhancockrealestate.com.
About Manulife Asset Management Private Markets
Manulife Asset Management Private Markets has investment expertise in several private asset classes, including commercial real estate, timberland and farmland, renewable energy, oil and gas, private equity and mezzanine debt. Manulife Asset Management Private Markets also partners with Manulife’s specialized private asset investment teams to invest in private placement debt and commercial mortgages. Hancock Natural Resource Group, Manulife Real Estate, John Hancock Real Estate, NAL Resources, Regional Power, Manulife Capital, and Hancock Capital Management are units of Manulife Asset Management Private Markets. As at September 30, 2014, Manulife’s assets under management in private asset classes were C$79 billion (US$70 billion), including assets managed by and for Manulife’s general fund and external clients. Additional information may be found at ManulifeAM.com/PrivateMarkets.
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife and its subsidiaries were approximately C$663 billion (US$591 billion) as at September 30, 2014. We operate as John Hancock in the U.S. and as Manulife in other parts of the world.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife can be found on the Internet at manulife.com.
About Allianz Real Estate
Allianz Real Estate is the strategic centre of expertise in real estate 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 six international subsidiaries and hubs in Germany, France, Switzerland, Italy, USA and Asia/Pacific. The headquarters of Allianz Real Estate are located in Munich and Paris. As of 30th September 2014 Allianz Real Estate has approximately €33 bn in assets under management.
About Allianz Real Estate of America LLC
Allianz Real Estate of America is responsible for equity investments and the commercial mortgage loan business in the Americas. Allianz Real Estate of America, based in New York, has a portfolio of over $8 billion of commercial mortgage loans and equity investments and commitments, diversified across over 30 metro markets and spanning office, multi-family, retail, industrial and medical office buildings.
SOURCE John Hancock Real Estate