AXA Investment Managers - Real Assets launches Development Venture IV, having raised over €600 million of capital
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe(1), announces the final close of Development Venture IV (“DV IV” or the “Fund”), its fourth generation development fund. The Fund has raised a total capital in excess of €600 million from 17 global investors across 9 countries, providing it with an investment capacity of up to €2 billion including leverage and reinvestment proceeds. More than 50% of the capital has been raised from repeat investors in the three previous Development Venture Funds.
The Fund, which follows on the success of the previous generation of development funds, has an eight year life and a target of €200 million build-out value per project. Property types across all stages of the development cycle will be considered, including green and brown field 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 development 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 capitalise on the different real estate markets across Europe in core locations, primarily in France, in the UK, in Germany and in Spain.
AXA IM - Real Assets has already begun to invest the equity raised for DV IV with the acquisition of Assembly Bristol, a 1.5 acre development site in the heart of Bristol City Centre, and is currently nearing completion on a number of other investments into development opportunities notably in Paris Region.
AXA IM - Real Assets has more than 15 years’ experience in sourcing and managing projects at all stages of the development process and has managed over 250 projects representing a total value of €13.2 billion since 2000. DV IV is the fourth generation of development funds launched, advised and managed by AXA IM - Real Assets, and of which €1.2 billion of equity have been invested or committed across 30 projects, including the award-winning Sixty London in London, the headquarters offices of major international companies in Bois-Colombes, and Qu4drans development in Paris.
Denis Morel, Senior Fund Manager at AXA IM - Real Assets, commented: “Our ability to raise over €600 million for DV IV is a strong testament to the confidence in our development capabilities and acknowledges the track record of the previous funds in the acquisition and delivery of high-quality, institutional grade commercial real estate projects in core European markets. We look forward to leveraging this track record and origination expertise to source future development opportunities to build highly sought-after income-producing products that will deliver attractive returns to our investors.”
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(1) Source: IP Real Estate Top 100 Investment Management Survey – Nov/Dec 2015
AXA Investment Managers – Real Assets
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