Allianz Real Estate aims to raise China investment

The property investment arm of Germany's Allianz SE expects China to account for up to 50 per cent of its Asia-Pacific fund allocation going forward from 40 per cent now, with focus on the new economy and logistics sectors, a senior executive said. "We want to be aligned to the new economy and contribute toward China's growth in the sector; we're investing based on that thesis," Mr Desai said. New economy refers to non-traditional industries such as biopharma and online retail. Allianz Real Estate is just one of many foreign investment firms betting on growth in the commercial property markets of China's top-tier cities, driven by high demand from small start-ups to large corporates. The firm bought 98 per cent of the Beijing office tower - dubbed ZLink and valued at US$185 million to US$195 million - in an all-cash deal from private equity firm KaiLong Group and Goldman Sachs Group Inc.