AXA IM - Real Assets has announced the final close of Development Venture IV (DV IV), its fourth generation development fund, and unveiled its first purchase in Bristol, UK.
DV IV has acquired Assembly Bristol, a 1.5 acre development site located in the city centre. The purchase price was not disclosed. AXA IM said it was also nearing completion on a number of other development opportunities, including one or more deals in Paris.
'Our ability to raise over €600 mln for DV IV is a strong testament to the confidence in our development capabilities and acknowledges the track record of the previous funds in the acquisition and delivery of high-quality, institutional grade commercial real estate projects in core European markets,' commented Denis Morel, senior fund manager at AXA IM - Real Assets. 'We look forward to leveraging this track record and origination expertise to source future development opportunities to build highly sought-after income-producing products that will deliver attractive returns to our investors.'
Capital has been raised from 17 global investors across 9 countries, providing the fund with an investment capacity of up to €2 bn including leverage and reinvestment proceeds. More than 50% of the volume has been raised from repeat investors in its three previous Development Venture funds.
AXA IM said that the fund would have an eight year life and a target of €200 mln build-out value per project. It will focus a variety of property types, including green and brownfield sites, assets that require refurbishment as well as co-investment opportunities. The fund is looking at properties primarily located in France, the UK, Germany and Spain.
