AXA Investment Managers - Real Assets completes record €13.6 billion of 2016 transactions with global expansion to continue in 2017
- 2017 targets include €1 billion of U.S. acquisitions and focus on alternatives, logistics and core investments -
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real assets investment and the leading(1) real estate portfolio and asset manager in Europe, announces that it completed a record high in 2016 with €13.6 billion of global equity and debt transactions on behalf of its clients, and that it expects similar transaction levels in 2017.
Acquisition activity in 2017 is set to include further investment in student and retirement accommodation, data centres and logistics assets, as well as core office properties in dominant global cities. €4.8 billion of disposals were completed in 2016, while acquisition volumes reached €3.5 billion including over €1 billion in France, over €500 million in Germany and over €300 million in the UK, and volumes are set to continue in 2017 across these three countries.
2017 will also be characterised by further global focus, including an increase in investment volumes in the U.S. as well as in Asia Pacific where in September 2016 Eureka - Real Assets, one of Australia’s leading independent real estate fund and investment managers, was acquired, further expanding AXA IM - Real Assets’ reach in the region.
AXA IM - Real Assets 360° will continue its approach to investing with a focus on direct property and infrastructure assets, as well as private or listed debt. Equity transactions during 2016 totalled €8.3 billion while €5.3 billion of debt investments were completed. Other highlights include:
• In Europe a total of €3.2 billion of assets were acquired on behalf of clients, including the Tour First office tower and a direct infrastructure investment with stake in motorway A63 in France, as well as a major portfolio of 17 German healthcare properties for c. €310 million. European disposals totalled €2.2 billion;
• In the U.S., €330 million of acquisitions were completed, including a 49% stake in a prime West Los Angeles office building as well as Century Northlake Apartments in North Carolina, a 570-unit multifamily complex. Disposals in the U.S. totalled €2.5 billion. In 2017, AXA IM - Real Assets is targeting €1 billion of U.S. investments;
• In Asia, €129 million of disposals were completed as part of the successful sell-down of the Tokyo Office Property Fund which produced an IRR(2) in excess of 25% over five years.
Isabelle Scemama, Chief Executive Officer of AXA IM - Real Assets, commented: “In what was a competitive market environment during 2016, we remained resolute in our focus on broadening the types of real assets we invest in and on expanding our international reach. We transacted on some of the market’s biggest deals, including the tallest building in France. Our 360° investing approach in multi-assets together with our capability in both equity and debt investments means we have been able to meet our clients’ demand for diversification in product types. This, combined with our growing global foot-print, means we can source transactions for clients across the world’s built environment.”
“2017 is about continuing to expand globally whilst carefully navigating the changing market environment. We will look at liquid markets as well as assets where we can pursue active asset management or development to create value for our clients. We will also focus on assets with underlying secular trends, such as healthcare, student housing or data centres. We will continue to focus on investing from a debt or equity perspective both in real estate and infrastructure, all with the objective of serving client needs.”
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Note to editors: All AXA IM - Real Assets’ data are unaudited as of end of December 2016
1 Source: IP Real Estate Top 100 Investment Management Survey – Nov/Dec 2016
2 IRR based on the net distribution (after tax, fees and carried interest) to the investor.
AXA Investment Managers - Real Assets
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