Real Estate has acquired 27 medical offices properties in the US for $463m (鈧�391m), with $234m of debt financing from .
The portfolio was sold by IRA Capital and purchased for the open-ended Nuveen US Cities Office Fund and an unnamed third-party institutional investor.
Allianz Real Estate has provided seven-year debt, including a $164m fixed-rate tranche and a $70.2m floating-rate tranche, on behalf of several Allianz group companies.
Encompassing more than 747,000sqft of rentable space, the鈥�27鈥痗lass-A and B properties鈥痑re in 13 states: Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, New York, Pennsylvania, Texas and Wisconsin.
The portfolio rent roll has a weighted-average unexpired lease term of 12 years, and the portfolio includes traditional medical offices, urgent care centres, outpatient surgeries, and specialist treatment centres and hospitals.
Allianz said the majority of the properties鈥痑re located in鈥疌ON states, in which local governments require extensive鈥痑pproval processes to prove the need for the development of new healthcare facilities鈥痠n each鈥痩ocation 鈥� providing high barriers to entry and regulatory restrictions around new supply.鈥��
The portfolio is 99% occupied鈥痓y鈥�38 tenants, of which 92% are investment-grade credit healthcare systems.
Mike Cale, co-head of US鈥痙ebt at Allianz Real Estate, said: 鈥淭his is a complex and innovative transaction that鈥痷nderlines鈥痮ur willingness to take a flexible approach to meeting the requirements of鈥痮ne of our鈥痩ong-standing global partners.
鈥淐OVID-19鈥痟as鈥痟ighlighted鈥痶he need for鈥痠mproved efficiency and ease of access鈥痶o healthcare, increasing demand for outpatient centers鈥痑nd鈥痟igher-severity鈥痗are space within hospitals.
鈥淢edical offices鈥痶hus鈥痳epresent a unique,鈥痳esilient asset class鈥痯oised to鈥痜urther鈥痓enefit from鈥痵trong fiscal tailwinds鈥痚ngendered by鈥痓oth鈥痶he鈥疌ARES Act and鈥痶he鈥疷S鈥痵mall business stimulus鈥痯rogramme.鈥�
The transaction is Allianz鈥檚 second US debt deal with Nuveen Real Estate, following its $94m financing of six industrial properties for the Nuveen US Cities Industrial Fund in 2020.
鈥淲e鈥痑re delighted to鈥痟ave completed this latest transaction鈥�,鈥� said Christoph Donner, CEO, Allianz Real Estate of America. 鈥淒espite the volatility seen over the last 12 months, Allianz Real Estate has substantially鈥痚xpanded its U.S.鈥痯ortfolio, reaching鈥痑 record鈥疷SD鈥�21.6bn鈥疉UM鈥痑t the end of 2020, spanning鈥痚quity and debt. We look鈥痜orward to building on our commitment to the region.鈥�
