NOVEMBER 16, 2016

AXA real estate development fund holds €600m final close

by Andrea Waitrovich

AXA Investment Managers – Real Assets has held a final close for its Development Venture IV, raising €600 million ($643 million) in equity commitments from 17 investors across nine countries.

More than 50 percent of capital was raised from repeat investors in the three previous Development Venture Funds.

The fund has an eight-year life and a target of €200 million ($214 million) build-out value per project. Property types across all stages of the development cycle will be considered, including greenfield and brownfield sites, existing properties requiring heavy refurbishment and/or by co-investing in development joint ventures.

AXA IM – Real Assets is pursuing an opportunistic long-term capital gains strategy by implementing a build-to-core develop-and-sell approach, which takes advantage of investor demand for large, high-quality, income-producing assets. The investment strategy will be driven by timing and will capitalize on the different real estate markets across Europe in core locations, primarily in France, Germany, Spain and the United Kingdom.

AXA IM – Real Assets has begun to invest the equity raised for DV Fund IV with the acquisition of Assembly Bristol, a 1.5-acre development site in the city center of Bristol, England, and is currently nearing completion on a number of other investments into development opportunities notably in the Paris region.

DV Fund IV is the fourth generation of development funds launched, advised and managed by AXA IM – Real Assets. The previous funds in the series have raised €1.2 billion ($1.3 billion) of equity, which has been invested or committed across 30 projects, including Sixty London; the headquarters offices of major international companies in Bois-Colombes, France; and the Qu4drans development in Paris.

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