Paris-based real estate investment management firm, AXA Real Estate Investment Managers, has held a €230 million first close for its pan-European development fund, Development Venture III.
The fund manager raised the capital from four investors, according to a statement, although part of the amount raised came in the form of co-investment from insurance companies of the AXA Group.
AXA REIM aims to garner €600 million in total commitments for investments in brownfield sites as well as sites that require significant redevelopment and in development joint ventures. It will invest across the real estate asset classes although predominately in offices.
It said individual developments targeted should have a minimum end-value of more than €300 million.
AXA REIM hopes to produce an opportunistic IRR of 25 percent gross from the vehicle, its third development fund launched to date. The two previous efforts were launched in 2001 and 2004 respectively, have a combined assets of €2.3 billion and are currently providing investors with IRRs of more than 40 percent a year, at the project level, AXA REIM said.
Eric Stampfli, AXA Real Estate’s development funds director, said: “We believe that the launch of this development fund at this stage in the market cycle will enable us to deliver both speculative and pre-let assets into targeted markets where we see restricted supply and strong tenant demand, offering the potential for strong value creation for our investors.”
AXA REIM, which is wholly-owned by AXA Investment Managers Group, has more than €38.2 billion of assets under management world as of the end of March 2010.