Germany's Allianz SE partnered with Indian conglomerate Shapoorji Pallonji Group to establish the $500 million SPREF II property fund, with a focus on the office market in India, Reuters reported.

The new fund forms part of Allianz's plan to allot roughly 5% of its global real estate portfolio to Asia-Pacific. The insurer will hold a 50% stake in the Indian rupee-denominated, closed-ended fund, while the rest will be held by long-term institutional investors, the Oct. 12 report noted.

The fund will acquire real estate assets in Mumbai, Bengaluru, Hyderabad, Pune, Chennai and Delhi, to build a long-term, cash flow producing office portfolio.