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Allianz, Columbia Form $1.3 Billion U.S. Real Estate Venture Bloomberg (07/06/17) Chiglinsky, Katherine

Allianz SE and Columbia Property Trust Inc. have partnered to create a $1.26 billion joint venture for U.S. real estate. Allianz SE has contributed an office building at 114 Fifth Avenue in New York City. For its part, Columbia Property Trust Inc. contributed office buildings in Palo Alto and San Francisco, Calif. The partnership comes as more insurers are using real estate as a means to increase investments in long-term assets. As part of the deal, Allianz SE owns a 22.5 percent stake in the California properties. The insurer expects to increase that stake to 45 percent in 2018. Both companies plan to pursue more office acquisitions in the future.