AXA Real Estate has secured a €485 mln investment mandate for a new senior commercial real estate debt fund created by five Danish pension funds.

AXA Real Estate has secured a €485 mln investment mandate for a new senior commercial real estate debt fund created by five Danish pension funds.

AXA Real Estate has been appointed as investment manager for Kronborg limited, a new debt vehicle formed by Danish pension funds Sampension, TDC Pension, AP Pension, JØP and DIP.

AXA Real Estate won the mandate following a competitive pitch process and will now focus on investments in large size senior loans across all asset classes, including offices, retail, logistics and hotels. The vehicle will target opportunities in Western Europe, in particular the UK, France and Germany, alongside other clients within AXA Real Estate’s €7.9 bn debt platform.

'The bank disintermediation is offering an opportunity for investors to diversify their traditional credit allocation into private debt, which enables them to benefit from significant liquidity premiums to achieve the yield enhancement they need, particularly in a low interest rate environment,' commented Charles Daulon du Laurens, AXA Real Estate’s head of Investor Relations-Real Asset Finance.

He added: 'The Kronborg Fund is a prime example of agile investors recognising the emergence of a market trend and fully capitalising on it. We believe that the longstanding and proven track record of our debt platform is a key factor that is important to investors when selecting a partner to manage their CRE loan allocation.'

Since the launch of its first debt fund in 2009, AXA Real Estate has quickly become Europe's largest alternative debt provider. The French portfolio and asset manager is currently targeting at least another €2.5 bn of equity commitments in a new round of fundraising for its European debt platform, Isabelle Scemama, global head of real asset finance at AXA Real Estate, recently told PropertyEU.

The group currently has 40 clients (including six AXA entities) including several separate mandates of over €300 mln, underlining institutional investors’ strong commitment to real estate debt. ‘Nowadays we have more and more clients come to us with deep pockets who want to add real estate loans to their business,’ Scemama said.

While insurance companies initially represented the bulk of the group’s client basis, today they share the stage with global pension funds from the US, Europe and Japan, which account for a 50% share.