AXA RE raises another EUR 147.5m for development venture

AXA Real Estate Investment Managers has raised an additional EUR 147.5 mln of equity for the second close of its pan-European development venture, Development Venture III.

The new investment brings the total amount of equity raised to date to EUR 377.5 mln, against a final target of EUR 600 mln equity, meaning the venture now has up to EUR 1.3 bn of development capacity after leverage and reinvestment of proceeds. Commitments have been secured from a number of pension funds, insurance companies and third party funds from European countries including the UK, the Netherlands, Germany, Finland and France.

The venture invests opportunistically in green and brownfield sites, as well as existing assets which require extensive redevelopment. Following the second closing, the venture has committed most of its equity through a number of transactions in London and Paris.

Acquisitions include a 20,000-m² office building project in the City of London, and a development site in the Paris region (Western Business District) which has planning permission for a 40,000 m² office complex and is already 78% pre-let. Both developments are advised by AXA Real Estate's local development teams and are due for completion in 2013.