AXA Real Estate Investment Managers, the real estate investment management arm of French insurance giant AXA, has teamed up with Europe and Asia focused private equity real estate firm MGPA to buy a City of London development.
The partners announced today they had created a 50:50 joint venture partnership to acquire and develop a 160,000 square foot office at 6 Bevis Marks. The combined investment is expected to be approximately £115 million (€132 million; $182 million) comprising equity from both firms and debt from the project’s existing lender, Eurohypo.
Its previous owner was a US wealth management firm called The Monteverde Group.
Described by the joint venture as an “innovative structure for major debt workout transaction” to include “speculative development finance” , they said the scheme would work partly because of its close proximity to Liverpool Street underground station, one of London’s main transport hubs.
The joint venture’s development is expected to start at the start of next year with practical completion reached in the autumn of 2013.
For AXA, its investment will be the final capital outlay made on behalf of its Real Estate Opportunities Fund II, which was launched in December 2006 and closed on €130 million. MGPA, meanwhile invested via its MGPA Europe Fund III, which was raised in 2007 and has €841 million of commitments.