Allianz is set to pause possible investments in the Irish residential property market due to the potential reputational damage it could cause to the business.
According to The Irish Times, Allianz has been considering a number of residential properties in Ireland, holding a global property portfolio of €79 billion.
The firm's insurance arm, which is one of the largest general insurers in Ireland, is understood to have lobbied against investments being made in the Irish property market, believing it may cause the company to be seen as a so-called cuckoo or vulture fund.
The company has since ceased engagement regarding the investment opportunities and made other parties in the property sector aware of the decision. However, this will not impact existing investments, such as its 50 per cent ownership of the Dundrum Town Centre.
In a statement, Allianz said the company "continues to be open to further real estate investment opportunities in Ireland across the different sectors" but added that input from a number of parties, including the "local insurance entity" is taken into consideration before decisions are made.
The decision comes as rents have soared across the country, particularly outside of Dublin, assisted by a huge level of demand and an insufficient housing supply.
Latest figures from the Residential Tenancies Board for the second quarter of the year showed rents in Ireland rose, on average, by 7 per cent year-on-year, while Dublin saw a 4.4 per cent increase.
