AXA Real Estate targets €10 bn outside Europe

AXA Real Estate is taking steps to expand its platform outside Europe, particularly in North America and Asia, CEO Pierre Vaquier told PropertyEU.

‘Our asset basis has a strong focus on Europe. That is our strength and we also serve a lot of European clients. At the same time, we believe we have to become more global. Not necessarily because our investors want a global fund, in fact most want to invest in regional funds. A key driver for becoming more global is that capital sources outside Europe are substantial.’

Over the next five years, Vaquier is targeting a portfolio of some €10 bn outside Europe which could potentially boost total AUM to well over €60 bn given the company’s pace of growth in Europe over the past few years and its unsated appetite for further expansion in its traditional home base.

According to the latest PropertyEU ranking of top 100 investors in Europe, AXA Real Estate has emerged again in the nr 1 slot.

While a number of big North American investment managers have recently formed alliances with European partners in a bid to gain a stronger foothold in the European market, Vaquier said he was planning to realize expansion outside Europe via organic growth and through partnerships with local players.

‘One thing we are not considering is a large acquisition. For us, an integrated platform is essential. Some players have been successful through big acquisitions but we believe it would be very difficult to integrate an independent business in the US. We plan to do things step by step. We want to be sure about the quality of the services we provide and believe that a fully integrated approach is easier to realize when you start from scratch. We prefer to build our own platforms. ’

At the same time, Vaquier is keen to join forces with local partners and aims to develop investment teams in Japan and Australia. A single platform serving the entire Asia-Pacific region is not on the cards either, he said. ‘Asia is very complex. If you want to create an investment platform in China or India, you really need to create local teams.’

In September, the French real estate giant teamed up with Australian investment manager Eureka Funds Management to buy the Sydney headquarters of Australia Post on behalf of a Singapore family office fund.

The full interview with Pierre Vaquier will appear in the upcoming edition of PropertyEU's Top 100 Investors supplement at Expo Real.