AXA closes 4th development fund at €600m – Exclusive

The real assets subsidiary of French insurance giant AXA has surpassed its previous fundraising effort for its fourth real estate development fund. 

AXA Investment Managers – Real Assets (AXA IM – Real Assets), the Paris-based real assets investment arm of French insurer AXA, has announced the final close of its fourth real estate development vehicle, Development Venture IV (DV IV), after garnering more than €600 million in capital commitments.

AXA IM – Real Assets, has raised the capital on behalf of the fund from 17 global investors across nine countries, providing it with an investment capacity of up to €2 billion, including leverage and reinvestment proceeds. More than 50 percent of the capital has been raised from repeat investors in the three previous funds, the firm said.

According to the firm, the closed-ended opportunistic vehicle would have an eight-year lifespan and would be used to target a range of property types. However, the primary focus would be on European core locations, including in France, the UK, Germany and Spain.

The firm has already begun to invest the capital raised for DV IV with the acquisition of Assembly Bristol, a 1.5 acre development site in the heart of Bristol, and is currently nearing completion on a number of other investments, most notably in Paris.

“Our ability to raise over €600 million for DV IV is a strong testament to the confidence in our development capabilities and acknowledges the track record of the previous funds in the acquisition and delivery of high-quality, institutional grade commercial real estate projects in core European markets,” said Denis Morel, senior fund manager at AXA IM – Real Assets.

“We look forward to leveraging this track record and origination expertise to source future development opportunities to build highly sought-after income-producing products that will deliver attractive returns to our investors,” added Morel.

The fund’s predecessor vehicle, DV III, generated a total fundraise of €589 million.

The fundraise was completed at a time when AXA has been active on behalf of other vehicles it manages.

In July, the firm completed the acquisition of a core office asset in Milan’s commercial district of Fiera for €220 million. The building, located in Via Monte Rosa 91, was purchased on behalf of two funds managed by AXA IM – Real Assets, Selectiv’ Immo and CoRE Europe Funds. Both vehicles target high-quality, core properties in major European cities. The seller was MPO, an Italian real estate fund owned by Zug, Switzerland-based private markets investment firm Partners Group.

While in June, AXA IM – Real Assets bought the 475,000 square foot Wiltcher’s Complex in Brussels for €120 million from AG Real Estate, the property arm of Belgian insurer AG Insurance. The asset was purchased on behalf of a joint venture between AXA Selectiv’ Immo and its latest retail vehicle, launched earlier this year, AXA Selectiv’ Immoservice.

The firm currently has more than €63 billion in real estate assets under management.