Allianz aims to double infrastructure investments in next 2-3 years
By Arno Schuetze and Alexander Hübner
FRANKFURT (Reuters) - German insurer Allianz is looking to double its investments in infrastructure and renewable energy projects within the next two to three years as it seeks to diversify on where it invests its 638 billion euros (510 billion pounds) of assets, the head of Allianz Capital Partners (ACP) said.
ACP is targeting solar and wind power assets worth about 3 billion euros within that timespan as well as power grids, roads, airports and other regulated assets worth about 4 billion euros, Juergen Gerke told Reuters.
Together with its investments in private equity funds, ACP currently has 15 billion euros in assets under management and is aiming to add 10 billion in the medium term.
"So far, we don't play in the premier league, but we want to as soon as possible," Gerke said, adding that ACP has drawn a line under its direct private equity investments and will only grow its 8 billion-euro fund of funds business slowly.
ACP has been an active buyer of infrastructure of late, buying into London's Thames Tideway Tunnel, the city's new "super-sewer" project, and Germany's motorway service stations group Tank & Rast in 2015.
Doing three deals a year means testing ACP's own limits, Gerke said, adding that it was currently looking at airport privatisations as well as road concessions.
While Allianz recently pulled back from buying London's City Airport, it is expected to look at France's sale of its stakes in the Lyon-Saint-Exupery and Nice Cote d'Azur airports, people familiar with the matter have said, adding the insurer may also express interest in a minority stake in British M6 toll motorway, which is coming up for sale.
Gerke declined to comment on specific assets, although he said Allianz would hold back from investing in coal or oil ventures but sees gas as less problematic due to the lower carbon footprint.
In its renewable energy portfolio Allianz has also become more open to investing in offshore wind farms, but only if the price is right.
"We have looked at some (offshore wind farms) projects. But so far, the additional risk had not been reflected in the return, so our decision has been a 'no'", Gerke said.
(Reporting by Arno Schuetze und Alexander Huebner; Editing by Harro ten Wolde, Greg Mahlich)
