A €625m fund has been launched by insurance giant AXA to invest in 20 or 30 “core-plus” properties in continental Europe.
The European Added Value Fund has an initial commitment of ¤118m of equity from eight investors in Denmark, Finland, the Middle East and the UK.
AXA Real Estate Investment Managers, which is managing the fund, is looking to increase the equity investment to €250m, then borrow €375m, giving the fund total purchasing power of €625m.
Investors are promised a target 12% return over the seven-year life of the fund, said Anthony Shayle, head of business development.
“The EAVF fund is shaded towards offices. There will be some logistics and maybe a few hypermarkets,” he said.
“But we will keep open the possibility of some other tempting high-return opportunities in other sectors.”
France, Germany, Portugal and Belgium have been targeted.
Shayle said AXA REIM, which has €29bn of assets under management, would identify stock from its own network of European offices. A new fund manager is being hired.
“We have already made some early acquisitions,” said Shayle. “More will be made in the next three to four weeks.”
