Asset owners and fund experts are sceptical about the profitability of student accommodation while Covid-19 rages, but the assets could yet hold up when structured well.
Insurers across the region will see premiums grow by €1.28 trillion, over half coming from China, said a new report by Allianz.
The two asset owners are launching what should be the largest closed-end fund in Asia for a diversified portfolio of premium real estate, and are eyeing several assets.
German insurance giant Allianz now has property investments in the two countries large enough that it needs boots on the ground to manage them.
Once the deal is done, the $100 billion-plus juggernaut is expected to ramp up its Asia exposure, with Pimco likely helping Allianz Real Estate to build a third-party client business.
The German insurer is using its new holding company as a platform to develop its business faster in China, but more rivals will be there soon.