The real estate arm of insurance giant Allianz has acquired 44% stake in 10 Hudson Yards, one of the newest skyscrapers in Manhattan.
 
The insurer’s New York-based unit contributed about $420 million in cash and was part of a group that took on a $1.2 billion mortgage, Bloomberg reported.
 
Apart from Allianz, the limited partnership that now owns the property includes Related Companies, Oxford Properties Group and institutional investors advised by J.P. Morgan Asset Management.
 
“This opportunity reflects the goal of our U.S. team to pursue high-quality, long-term investments with best-in-class partners,” said Christoph Donner, Allianz Real Estate of America CEO.
 
In an interview with Bloomberg, Donner said the insurance firm plans to hold its stake in the 52-storey tower for at least 10 years.
 
“When we started speaking to partners about this deal there was volatility, especially on the financing side,” Donner told the news agency.
 
“We are seeking to invest for the long term and we are not as concerned about immediate volatility.”
 
The latest deal is one of the largest real estate transactions in New York this year, Bloomberg noted. It is also Allianz’s largest investment in single property, according to Gary Phillips, the head of acquisitions at the insurer’s real estate unit.
 
Phillips told Bloomberg that Allianz started acquiring real estate in the US in 2011 to diversify holdings that were heavily concentrated in Paris and Germany.
 
 
Related stories:
Allianz Insurance gets naming rights on stadium
Allianz Insurance joins the cyber race