AXA Real Estate has reached a €2.9bn (£2bn) final close on its latest senior debt fund, exceeding target and making it one of the largest debt funds in Europe.
The fund, Commercial Real Estate Senior 9, had an initial target of €2.5bn for final close but broke through its target with commitments from 18 institutional investors.
The fund adds to €8bn of past investment in the company’s debt platform and, along with the award of a mandate to manage £350m on behalf of a UK pension fund using the same strategy, takes the total size of the debt platform to €11.3bn.
The investors were largely pension funds and insurance companies from across Europe including, France, the UK, Germany, Netherlands, Ireland, Denmark, Belgium and Switzerland.
In addition to its more traditional investment base, the fund also became the first to incorporate a German feeder fund, which can issue rated notes to German regulated and institutional investors.
European head of sales Charles Daulon du Laurens said: “Real estate, having made the shift from a traditional to mainstream asset class, has now become an essential allocation within any investor’s portfolio, and as we continue to secure capital across the globe, we maintain our position as the private debt investor of choice in Europe. In response to ever changing investor requirements, we look to continue to offer new and dynamic products to ensure we deliver value and long-term income streams for our clients.”
