Manulife Asset Management Private Markets, the private asset management arm of Manulife has entered into an arrangement with Allianz, a 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.
Operating as John Hancock Real Estate in the U.S. and Manulife Real Estate in all other parts of the world, the portfolio totals more than 40 million square feet with a market value of $10.4 billion.