AXA Investment Managers - Real Assets has raised €643m for its second European value-added strategy, exceeding its initial €500m target.
The manager said the amount raised for Pan-European Value-Added Venture (PEVAV II) provides an investment capacity of up to €1.3bn, including leverage.
PEVAV II received over 60% of its capital commitment from follow-on investors from the first value-add venture, which closed in May 2016 having raised €445m, the manager said.
AXA IM - Real Assets said €240m of equity was raised from five new institutional clients from Europe, Israel and South Korea.
PEVAV II will seek to invest in and create value from under performing assets with inherently core qualities.
The fund targets assets in France, Germany, Italy, the Nordics, Spain and the UK and specifically in and around the largest and most liquid tier-one European cities, the manager said.
It will mostly seek investments in the €50m to €150m range across both traditional real estate asset classes.
PEVAV II’s current assets include the 8Gallery shopping centre in Italy, acquired in July 2018 and the TechnoCampus Berlin office campus which was acquired in December last year.
Ian Chappell, the head of value-add and development funds at AXA IM - Real Assets, said: “Having been an early mover back into value-add investing in 2011 and following the success of our first venture, the amount raised for PEVAV II has exceeded our initial expectations.
“I am particularly pleased by the high level of support shown by our follow-on investor base which is a strong endorsement of the success of our value-add platform.”
