AXA, the French insurance giant, has teamed up for the first time with ATP, Denmark’s largest pension fund, for the acquisition of two large office towers in Belgium.
The newly acquainted partners have purchased the North Galaxy office towers in Brussels from Belgium property company Cofinimmo in a deal that values the tower at €475 million.
AXA Real Estate (RE) Investment Managers, the real estate investment management business of AXA completed the deal on behalf of the partners. Specifically, the deal was completed for AXA’s Belgian unit, AXA Belgium, which manages about €40 billion of assets of which €3.1 billion is real estate.
The North Galaxy office towers comprise 1.6 million square feet of office space let entirely to the Belgian Building Agency, a Belgian government department. Pierre Vaquier, chief executive officer at AXA Real Estate described the deal as marking “the beginning of new and long-term partnership that we have been able to facilitate for our clients. We are pleased to welcome ATP as a new client.”
He said: “By successfully acquiring a well located, core asset we are able to provide our clients with exposure to stable, long term income, in a highly competitive market for core investments.”
Michael Nielsen, chief executive officer at ATP Real Estate, which undertakes real estate investments for the Danish pension, said: “This is an attractive investment for ATP Real Estate as it matches ATP’s wish for long and stable cash flows from well-located properties with low risk.”
“We have previously announced, that ATP Real Estate will increase its focus on this type of real estate assets in both Denmark and internationally. The investment shows that we are executing on this plan.”