AXA Real Estate lifts German share

Germany accounted for 41% of AXA Real Estate’s total acquisitions in 2012, surpassing its home market France.

In total, Germany accounted for €1.2 bn of transactions compared to just 10% or €260 mln in 2011. Switzerland was in second place with 31% (€908 mln) of total acquisitions, compared to 17% (€442 million) in 2011.

France, which saw the most activity in 2011, with 42% (€880 mln) of acquisitions, moved to fourth place last year with 11%, or €314 mln. It followed the UK with 16% of the total, compared to 26% (or € 676 mln) in 2011. Spain accounted for just 1% or €33 mln

Once again, France was the most active market in terms of sales, accounting for 47% of the total, or €980 mln (2011: 67% or €1.4 bn). One of the most high-profile disposals in France involved the sale of 8 Place Vendôme to the State Oil Fund of Azerbaijan (SOFAZ) for €135 mln, its first real estate investment in France.

The UK followed in terms of disposals at 22%, or €460 mln (2011: 15% or €315 mln), Germany at 16% or €340 mln (2011: 10% or €210 mln), Switzerland at 3% or €71 mln (2011: 5% or €105 mln) and the remaining 12% or €260 mln spread across Europe.

In total, AXA engaged in €7.3 bn of transactions in 2012 (completed or signed) including acquisitions, debt investments and disposals, an increase of 18% compared to the previous year (2011: €6.2 bn). In 2012, AXA also raised €7.4 bn of capital from over 50 European, North American, Middle Eastern and Asian investors.

The Paris-based investment manager also launched a number of new funds over the year including the UK Long Lease Property Fund. Following a six-month capital-raising, the fund had an initial £125 mln at end-December and has a target fund size of around £1 bn over the next five years.

The fund has already made two acquisitions and has 'a very strong pipeline,' Anne Kavanagh, AXA Real Estate’s Global Head of Asset Management and Transactions, told PropertyEU. The fund is targeting traditional supermarkets and food stores and other assets with long leases, she added.

Income stream is key, she said. 'This is a product that matches many of our investors' requirements in terms of liability matching.'

In addition, AXA raised €209 mln for its Caesar Fund, the first pan European office investment vehicle dedicated solely to Italian institutional investors, surpassing its ambitious target equity and providing a total potential fund size of around €420 mln once fully invested.
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In 2012, AXA also launched its dedicated Alternatives Business Line which aims to double alternative assets under management to €1.5 bn within three years.