Allianz confirms its position as a major real estate lender in green development transactions

Allianz Real Estate, acting on behalf of several Allianz Group companies, has granted 78% of a EUR 185 million loan alongside BNP Paribas Real Estate to Icawood for a complete restructuring operation located in the 18th arrondissement of Paris. This loan demonstrates Allianz Real Estate’s confidence in Icawood, a fund specializing in low-carbon-emission office developments.

As an organization committed to sustainability, this transaction demonstrates Allianz Real Estate's ambition to strengthen its position in green financing while at the same time paying particular attention to the carbon emissions of buildings.

This complex will hold approximately 31,500 sqm of office and retail space in addition to a 78-room student residence. It will benefit from Icawood's signature innovative features – a solid wood cross-laminated timber structure built on top of a completely restructured existing base – which will be implemented by French developer WO2. This construction technique significantly reduces the property’s carbon footprint while offering exceptional user experience and well-being.

The architecture of the buildings emphasizes the adaptability and flexibility of the interior layouts. The workspaces are designed to promote well-being and new uses. Features include the visible, high-quality wood structure, high air quality, 4,000 sqm of bright, interconnected walkways and terraces, outdoor spaces including a 2,400 sqm green roof terrace, and a 160m glass façade at street level with services accessible to all.

This transaction follows other green financings completed by Allianz Real Estate over the last 12 months and builds on the strategic decision to increase the share of investments dedicated to transitional assets and development loans. Previous such transactions include EUR 200 million in financing for the development of Arboretum in Paris and the EUR 196 million in debt funding in the Netherlands for the financing of Tripolis – a redevelopment project in Amsterdam.

"Green financing has become increasingly important to us as we direct more of our lending toward future-focused assets. This new financing with Icawood is an excellent example of the type of asset that will further strengthen the resilience of our loan portfolio, which has shown itself to be consistently resilient throughout the current pandemic,” commented Roland Fuchs, Head of European Real Estate Finance for Allianz Real Estate. “Alongside this, we believe that this restructuring operation will be an outstanding aspect within the broader renewal of this district of Paris, complementary to other projects such as Ordonner-Poissonniers and the Belliard block.”

The lending pool was assisted on the technical aspects by DePardieu Brocas Maffei, Wargny Katz and MottMacDonald.