AXA Real Estate said on Monday it has raised EUR 230 mln at the first close of its pan-European development fund, Development Venture III. The capital was raised from four European investors, together with co-investment from insurance companies of the AXA Group.
AXA Real Estate said on Monday it has raised EUR 230 mln at the first close of its pan-European development fund, Development Venture III. The capital was raised from four European investors, together with co-investment from insurance companies of the AXA Group.
AXA said strong interest from other investors will result in a slightly higher amount for a second closing, which has been earmarked for September. Overall the fund equity raising will be capped at EUR 600 mln with a target IRR of 25% gross.
The fund is an opportunistic vehicle which will invest in green- and brownfield sites, existing properties which require extensive redevelopment and development joint ventures. It will target mainly offices, but also retail, logistics, hotels and mixed used assets. The fund's geographic focus will be on Paris, however it will also make use of the specialist local development expertise of its teams in London, Milan, Madrid and major German cities. Individual development projects are expected to have a minimum-end value in excess of EUR 300 mln.
Development Venture III is the third development fund to be launched by AXA Real Estate to date, following on from the successful performances of the previous two development funds, launched in 2001 and 2004. These funds have completed in excess of EUR 2.3 bn of developments
across Europe, providing its investors with IRRs in excess of 40% pa on a project level.
