AXA Real Estate has reported a major expansion of its real estate debt programme after achieving record levels of transaction activity and equity origination in 2013.
AXA Real Estate has reported a major expansion of its real estate debt programme after achieving record levels of transaction activity and equity origination in 2013.
Since becoming the first non-banking lender to enter the European real estate debt market in 2005, AXA Real Estate expanded its real estate debt programme to €7.9 bn in 2013. The platform grew its investment capacity to €600 mln per loan while increasing the volume of transactions to €2.9 bn in 2013, compared to €2.3 bn in 2012.
The real estate arm of French insurer AXA said its total transaction volume increased by 26% to €9.2 bn at end-December 2013 from €7.3 bn the year before including the debt programme.
The 2013 result comprised an increase in acquisition volumes to €3.1 bn (2012: €2.9 bn), while real estate disposal volumes reached €3.2 bn (2012: €2.1 bn). In addition, real asset finance (commercial real estate debt and infrastructure debt) transaction volumes came to €2.9 bn.
During 2013, AXA Real Estate implemented its value-add investment strategy and increased total assets under management to €47.7 bn (2012: €45.3 bn).
Some €6.5 bn of new capital was raised from 30 clients and its commercial real estate debt platform grew to €7.9 bn. The equity commitments came from a range of investors, including institutions and sovereign wealth funds. Half of the new commitments originated in Europe with the rest coming from Canada, the US, Asia and the Middle East.
AXA's biggest direct property transactions last year include the €573 mln acquisition of Ropemaker Place, a prime office building in the City of London on behalf of a European and two Asian investors. In Germany, the firm extended its relationship with Norway's NBIM through the €164.1 mln acquisition of the SZ Tower in Munich in 50:50 joint venture with AXA Insurance Companies.
In 2013, AXA Real Estate continued to be one of the most active developers across Europe with €5 bn of current projects under management across the office, residential, retail, logistics and hotel sectors.
Pierre Vaquier, CEO of AXA Real Estate, commented: '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.'
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