AXA Investment Managers - Real Assets acquires Eureka Funds Management in Australia as it progresses its ongoing global expansion strategy
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe and one of the largest in the world(1) with €66 billion(2) of assets under management, announces that it has acquired the Sydney based company, Eureka Funds Management (“Eureka”), one of Australia’s leading independent real estate fund and investment managers.
The transaction forms part of AXA IM - Real Assets’ ongoing strategy to expand globally, with Eureka providing it with a significantly enhanced footprint in the Asia Pacific region, which AXA IM - Real Assets has identified as a key investment market. More specifically, the transaction delivers AXA IM - Real Assets with an established business in Australia, one of the top six pensions markets globally and one of the core real estate markets in Asia.
Following the acquisition, Eureka’s clients will still benefit from the same high quality services offered by the Sydney-based fund management company and will also be given direct access to the depth and breadth of AXA IM - Real Assets’ 360° approach to investing in real assets, whether in equity or debt, real estate or infrastructure. At the same time AXA IM - Real Assets’ clients will benefit from the established capabilities of Eureka in the Australian real estate market. In recognition of the goodwill attached to its well established brand in the Australian market, AXA IM - Real Assets will continue to use the Eureka name post acquisition, with Eureka operating as “Eureka -Real Assets”.
Eureka was founded in 2004 by Bob Kelly, Kumar Kalyanakumar, Quentin Shaw, Niall McCarthy and Rod Cowdroy. Eureka has an experienced team of real estate investment professionals and it currently manages a number of trusts and mandates with c. A$5 billion(3) (c. €3.4 billion)(4) of assets under management, which comprise offices, and retail assets. In line with another of AXA IM - Real Assets’ key business divisions, Eureka has a significant alternative real estate investment platform that includes car parks and hotels. Furthermore, Eureka also manages debt funds, allowing AXA IM - Real Assets to expand its market leading €13 billion(2) global real estate and infrastructure debt platform into Australia. This acquisition constitutes a new milestone in AXA IM continued engagement and long term commitment to the Australian Market.
Like AXA IM - Real Assets, Eureka is committed to responsible investment and environmental social governance and in this capacity is a trustee of The Australian Environmental Upgrade Fund, which provides environmental upgrade finance to building owners so they can make their existing buildings more energy efficient.
Commenting on the acquisition Pierre Vaquier, CEO of AXA IM - Real Assets, said: “As one of the world’s most liquid and transparent property markets, as well as a significant source of capital, we have long targeted Australia as a key region in AXA IM - Real Assets’ global expansion strategy and the acquisition of Eureka provides us with an immediate and significant footprint in this important region. From working in collaboration with Eureka over the past few years, having made our first investment in Australia with them in 2013, it has become increasingly apparent that our businesses are both extremely similar in ethos and highly complementary in terms of what each party brings. It therefore gives me great pleasure to welcome all of Eureka’s staff into the AXA IM - Real Assets’ team.”
Frank Khoo, Global Head of Asia at AXA IM - Real Assets, added: “Eureka provides us with exposure to one of the two core real estate markets in Asia alongside our Japanese investment centre where we have been actively investing for over a decade. Together with our business development and client serving offices in Singapore and our recently opened office in Seoul, we now have an extremely strong proposition for Asian institutions investing both in the Asia Pacific region and across the rest of the globe.”
Bob Kelly, Managing Director of Eureka, said: “We are very proud of having built Eureka into one of Australia’s leading real estate investment and asset management businesses. At this stage of our development, we can clearly see the benefits of becoming part of the AXA IM - Real Assets’ global team, not just in terms of having the wider resources and expertise that will allow us to take our business to the next level, but also the additional scope and quality of client service we can offer. I am hugely excited to be entering this new stage in the evolution of Eureka.”
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(1) Source: IP Real Estate Top 100 Investment Management Survey – Nov/Dec 2015
(2) AXA IM - Real Assets’ data as of end of June 2016
(3) Eureka’s data as of end of June 2016
(4) Conversion as of September 21st, 2016
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