Allianz Real Estate of America, Clal Insurance and real estate investment company Waterton Associates have formed a joint venture that will buy up to $800m of apartments in major US markets.
The venture will target core and core-plus multi-family investments with a minimum transaction size of $50m beginning in six major markets: Boston, Chicago, New York Metro, Northern California, Seattle and Washington, DC.
Core real estate typically refers to high quality, well-leased properties. Core-plus refers to similar assets that may need renovation in order to realise their full value.
"Clal is building a sizeable portfolio of institutional-quality assets in major metropolitan markets within the US," said Tamir Kazaz, CEO of Clal US Management, the wholly-owned subsidiary of Israel's Clal Insurance. "We see immense potential in partnering with reputable and experienced companies such as Allianz and Waterton Associates."
Christoph Donner, CEO of Allianz Real Estate of America, said the programme "allows Allianz to increase its long-term exposure to the US multi-family market, as well as expand our network of strategic co-investment partners."
Allianz Real Estate had approximately €33bn ($37bn) in assets under management at the end of 2014.
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