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Allianz issues first single asset PRS debt at Canary Wharf

Allianz Real Estate, is providing a £140 million (€161 million) loan to Canary Wharf Group to finance 10 George Street in London’s Canary Wharf in what is Allianz’s first single-asset Private Rental Sector (PRS) debt transaction in Europe.

The 10-year, fixed-rate loan – structured as an initial seven-year term with three one-year extension options – has been made on behalf of several Allianz group companies.

The building has a rentable area of 224,039 sq ft (20,813 sq m) comprising 327 residential and three retail units. Allianz said that sustainability is at the core of both its and Canary Wharf Group’s business strategies. The 35-floor building has features such as photovoltaic power collection and automatically controlled high-efficiency lighting. It has been awarded BREEAM Excellent accreditation and a Code of Sustainable Homes certificate, and is also fully aligned to the CRREM carbon reduction pathway for residential buildings.

The loan also meets Loan Market Association requirements to be classified as a green loan.

Although the transaction is Allianz Real Estate’s first single asset PRS debt transaction in Europe it is the firm’s eighth debt deal in London, bringing the value of the firm’s debt book in the city to almost €2 billion. Alongside Paris and Munich, London is the third hub for Allianz Real Estate’s pan-European debt program.

“We are delighted to be expanding our European debt portfolio with such a high-quality prime asset, and with a likeminded partner who supports our commitment to leading the international real estate market in terms of ESG and sustainability. This transaction also provides us with a strong opportunity to further diversify of our European loan book through exposure to the dynamic PRS market,” said Roland Fuchs, Allianz Real Estate’s head of European property financing.