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AXA REIM to make $550m Japan fund debut

The jointly managed vehicle with Japanese financial heavyweight Sumitomo Trust & Banking is the second in a four- fund Asia strategy for the French insurance giant aimed at partnering with managers in each of its target countries.

AXA Real Estate Investment Managers has teamed up with Japan’s Sumitomo Trust & Banking to co-launch a Japan real estate opportunity fund focused on Tokyo offices, a market which has been showing visible signs of distress of late.

It is expected to be launched and to start fundraising next year.

The vehicle will seek to invest using approximately $550 million in debt alongside equity raised from Japanese and international investors.

The fund, the details of which will be formalised before the end of the year, is the second in an initial four-fund strategy for AXA REIM which will ultimately see it manage sector-focused funds in China, Japan, India and Australia.

AXA REIM’s strategy in Asia is to manage country and sector-specific funds that are co-managed alongside a domestic manager.

The firm launched its debut fund in Asia in July which will invest in mid tier housing schemes in China. For that fund, the firm led by global head of Asia, Frank Khoo, teamed up with Chinese insurer Ping An.

Read more about AXA REIM’s strategy in Asia in the upcoming November issue of PERE in which Khoo joins three other Asia managers to discuss the latest real estate investment trends in the region.