Allianz invests in Irish property fund

German insurer Allianz has announced a multi-million euro investment in the Irish Property Unit Trust.

The Munich-headquartered financial services firm has committed to invest €140m in the commercial real estate investment vehicle. The trust, which is the country’s longest-established property fund, has €1.2bn worth of funds under its management — predominantly in large-scale commercial office and retail properties in Dublin’s central business district.

Commenting on the announcement, Allianz chief investment officer, Charles Pridgeon said the improving domestic economy played a large part in Allianz’s investment decision.

“As the economic recovery in Ireland takes hold, supporting improved demand, particularly in the domestic economy, we see the potential for strong long-term income returns at attractive levels for our stakeholders.

“The Irish Property Unit Trust’s long-term investment strategy and approach coincides with our own and we are looking forward to an ongoing and mutually beneficial relationship in the interests of our respective stakeholders,” said Mr Pridgeon.

The trust’s net income return for the year to the end of June was 6.21% while annualised total return for the same period was 27.2%.

Chief executive, Niall Gaffney said Allianz’s investment would aid its strategy to diversify its shareholder base. Among the assets the IPU trust manages are the retail unit occupied by Brown Thomas on Grafton Street, Dublin.