AXA Real Estate Investment Managers (AXA RE), the real estate investment management business of French insurer AXA, has concluded investing for its Tokyo Office Property Fund, a core strategy fund managed jointly with Tokyo-based Sumitomo Mitsui Trust Real Estate Investment Management, a subsidiary of Sumitomo Mitsui Trust Bank, the Japanese bank.
The partners acquired the Nishi Shinjuku KF Building, a 106,000 square foot office in the Nishi-Shinjuku district of central Tokyo, for an undisclosed price. While it declined to reveal the price paid for the asset, AXA RE did say, however, that the acquisition brings the total value of the assets held within the fund to ¥21 billion (€151 million; $191.55 million).
Hidetoshi Ono, head of Japan Core Fund at AXA Real Estate, commented: “This is a particularly significant transaction for AXA Real Estate as it marks our success in investing the remaining equity committed to the fund before the end of its investment period, at the same time as continuing to be able to provide our clients with exposure to core/core plus mid-sized office assets with a diverse mix of tenants that deliver secure and steady income streams with the potential for capital appreciation.”
The Tokyo Office Property Fund was launched in 2012 by AXA RE, which took responsibility for its management while Sumitomo Mitsui assumed responsibility for its asset management. The fund was raised for investments in mid-sized offices in the five central wards of Tokyo, namely Chiyoda, Chuo, Minato, Shinjuku and Shibuya as well as four adjacent wards, Shinagawa, Koto, Bunkyo and Toshima.
Closed-ended in nature, it has a five year lifespan during which it is expected to generate a 10 percent IRR for its investors.