AXA Investment Management – Real Assets has launched an open-ended fund targeting up to €3bn (£2.3bn) of equity in the next three years.
Initial investments from 10 institutions have given the Euro CoRE Europe fund around €500m of equity to invest in prime cities across Europe on the way to a target size of €5bn.
The fund has raised capital from European investors that lack the scale or local knowledge to invest in major schemes. It aims to return 7% over the lifetime of their involvement, assisted by a 30% gearing limit.
Target investments will include core office, retail and industrial assets.
The vehicle’s first transaction was a joint-venture investment in the €800m Tour First – a 863,000 sq ft office building in La Défense, Paris.
The fund will be managed by Paris-based Rainer Suter.
Isabelle Scemama, head of funds group at AXA Investment Management − Real Assets, said: “We may see some good opportunities to invest this year, thanks to the fact that some investors may be forced sellers if market volatility continues.”
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