AXA Real Estate Investment Managers has raised an additional EUR 180 mln from a number of European insurance companies in the second close of its pan-European debt fund, Commercial Real Estate Senior 1 (CRE1). The fund has now attracted total equity of EUR 530 mln, following the EUR 350 mln raised in January 2011.
AXA Real Estate Investment Managers has raised an additional EUR 180 mln from a number of European insurance companies in the second close of its pan-European debt fund, Commercial Real Estate Senior 1 (CRE1). The fund has now attracted total equity of EUR 530 mln, following the EUR 350 mln raised in January 2011.
AXA REIM said that the fund has already exceeded the minimum fundraising target and expects a final close before the summer 2011 with a number of potential investors from Europe currently at advanced stages of due diligence. AXA Real Estate's debt programme now reaches EUR 2.7 bn.
Since January 2011, AXA Real Estate has invested through eight different loans with a total value of EUR 375 mln. These are backed by various types of real estate assets including office, retail, and hotels that are located in the UK and continental Europe. The average all-in spread over swap rate stands at 275 bps, above the 250 bps fund target.
All these loans are senior exposures, secured by stable prime properties with an average LTV of below 60%, characterized with very strong cash flow streams. AXA Real Estate has now invested on behalf of its clients 25% of the equity it raised at the first closing of CRE1 and is currently working on a number of potential investments with a total value of over EUR 500 mln.
