AXA Real Estate posted a 26% increase in transaction volumes in 2013 taking activity to a record €9.2bn for the year.
This comprised a hike in acquisitions from €2.9bn to €3.1bn, and disposals from €2.1bn to €3.2bn.
Highlights include:
• In the UK, the €573m (£472m) acquisition of Ropemaker Place , EC2, on behalf of one European and two Asian investors.
• In Germany, extending its relationship with Norges Bank Investment Management, the €164.1m acquisition of the SZ Tower in Munich in 50:50 joint venture with AXA Insurance Companies.
AXA continued its development activity in Europe with €5bn of current projects under management across the office, residential, retail, logistics and hotel sectors.
Following the launch of the UK Long Lease Property Fund at the end of 2012 with a cornerstone investment of €152m (£125m) of equity, the fund completed eleven acquisitions by the end of 2013 and, with a further acquisition completed since the year end, the initial capital is already fully invested.
AXA also made its first investment in Australia via the €110m (A$168m) acquisition of an office asset in Sydney on behalf of a Singaporean client which forms part of AXA Real Estate’s global expansion strategy.
It added that real estate finance transactions – including commercial real estate and infrastructure debt – transaction volumes were €2.9bn
During the year €6.5bn of new capital was raised from more than 30 clients. Half of the new commitments originated in Europe with the rest coming from Canada, the US, Asia and the Middle East.
The investment manager’s commercial real estate debt platform grew to €7.9bn, increasing its investment capacity to €600m per loan while increasing the volume of transactions to €2.9bn in 2013 – up €3m from 2012.
AXA Real Estate’s debt platform serves 40 clients comprising insurance companies, pension funds and sovereign wealth funds investing in nine European countries including the UK, France and Germany.
The platform has a remit to invest in any asset class, although so far offices and retail account for almost two-thirds of loans underwritten with the balance in alternatives such as hotel, residential and logistics assets.
Its activity includes:
• A joint venture with NBIM for a pan-European investment programme in large size senior loans, with a primary focus on the UK, France and Germany;
• Raising €184m for a new Japanese commercial real estate debt investment programme from two Japan-based AXA insurance companies, representing the second debt investment vehicle for AXA Real Estate’s Japanese debt programme which now totals €283m; and
• A mandate from AXA Group to source and manage commitments to invest up to €10bn in the infrastructure debt market over the next five years.
In 2013, AXA Real Estate also implemented its value-add investment strategy and increased total assets under management to €47.7bn from €45.3bn in 2012.
It completed eight value-add transactions in five European countries for more than €600m in 2013.
Highlights include:
• In the Netherlands, the €157m acquisition of the landmark NH Grand Hotel Krasnapolsky, in the centre of Amsterdam, from NH Hoteles on behalf of a European and an Asian client.
• In southern Europe AXA invested €172m in the sale and leaseback of a 13-strong portfolio of government-let office buildings in Barcelona with the Generalitat de Catalunya. and €63.9m buying two offices and two shops at the Bodio Center business park in Milan from Aberdeen Asset Management.
• In December 2013, AXA was appointed by a large US pension fund to manage a €135m investment mandate, targeting value-add investment opportunities in Europe.
Chief executive Pierre Vaquier said: “2013 proved to be another very strong year for AXA Real Estate in terms of transactions completed and capital raised. Global expansion is one of our key priorities and 2013 was marked by the success of a new mandate in the US as well as the entry into a new market in Asia-Pacific with our first investment in Australia.
“In 2014, we will put our strong investment convictions in the service of our clients, ensuring that we continue to deliver the highest levels of performance and value to them in and outside Europe, while maintaining the amount of capital raised from new investors.”
bridget.o’connell@estatesgazette.com
