AXA's debt investment capacity hits EUR 2.5b

AXA Real Estate Investment Managers (AXA REIM) has raised EUR 350 mln in the first close of its pan-European debt fund, Commercial Real Estate Senior 1 (CRE 1).

The investors who took part in the initial closing are a mix of European insurance companies and AXA Group companies. CRE 1 has a total capital target of EUR 1 bn.

Added to existing commitments of EUR 1.15 bn, as well as EUR 1 bn which has already been invested, the first closing of CRE1 brings AXA Real Estate's total global investment capacity into debt to EUR 2.5 bn.

According to the 2009 survey published by the European Association of Investors in Non-Listed Real Estate vehicles (INREV, AXA REIM is the largest real estate manager in Europe. It is also the second largest globally with EUR 39 bn of assets under management at end-September 2010.

CRE1 will provide senior loans either directly or acting as a syndicate behind a bank and will focus on investments which are backed by good quality income producing properties. The fund will primarily target euro denominated investments, but will also seek exposure to Sterling and Nordic currencies.

Pierre Vaquier, AXA Real Estate's CEO, commented: 'CRE1 is a perfect example of how we are able to work with our clients to produce investment products that meet their specific requirements. A key selling point for our clients in this instance is our ability to assess risk and our inherent understanding of the real estate assets that underpin debt investment, as well as our proven expertise in this field.'

The investment manager has been investing in European debt since 2005, although the bulk of its investments to date have been transacted since mid-2009 and primarily during 2010. CRE1 is advised by AXA REIM SGP and investments on behalf of AXA Group companies are made through the regulated entity AXA REIM SGP.