AXA Investment Managers – Real Assets has launched a new pan European open ended real estate fund, AXA CoRE Europe, that has already raised over €500m from European institutional investors.
AXA CoRE Europe, having an initial investment capacity close to €700m, seeks to build a highly diversified portfolio of core real estate assets across Europe, capitalising on individual market dynamics and timing.
Over the long term, the asset manager aims to grow AXA CoRE Europe into a flagship European fund with a target size of €3bn to €5bn.
The fund will be managed by Rainer Suter, head of Continental Funds and Separate Accounts, at AXA IM – Real Assets. He will be supported by three portfolio managers based respectively in London, Paris and Cologne.
The fund is to acquire France’s tallest tower, Tour First (pictured) in Paris La Défense.
Investments will focus primarily on UK, Germany and France markets while maintaining the ability to invest across the entire continent from Spain to Benelux and the Nordics or Switzerland.
AXA CoRE Europe will target mainstream asset classes, primarily offices and retail, and primarily seek investments into well-located assets which have high building technical and sustainability specifications and are let to strong tenants on medium or long term leases.
The company said that the fund will also consider selective investments where it can enhance returns by improving occupancy rates and/ or through repositioning works and will also retain a flexibility of allocation which provides for the ability to manage real estate cycles over the long term.
AXA IM – Real Assets manages over €50.4bn of direct property assets under management and completes around 4,000 deals per year.
Rainer Suter, lead fund manager of AXA CoRE Europe, commented : “In an environment where institutional investors are continually searching for yield that allows them to meet their ongoing liability requirements, investment into core real estate assets through a large scale and highly diversified vehicle which offers visible long term income is a compelling proposition.
“AXA CoRE Europe will seek to offer investors precisely this in a European real estate fund, which is also sufficiently flexible to dynamically manage economic and real estate cycles over the long term.”
Isabelle Scemama, head of Funds Group, said : “Core investment is absolutely part of AXA IM – Real Assets’ DNA and AXA CoRE Europe encapsulates in a single vehicle everything that has enabled us to become the No.1 Real Estate Manager in Europe : our front-row access to deals resulting from our extensive local European footprint, our expertise and track record across all major property sectors, and our 30 years of experience in managing vehicles to answer investors’ needs.”