PARIS-AXA Real Estate Investment Managers, based here, announced it has raised $747 million in equity for its third European development fund. The fund will have up to $3.2 billion of development capacity after leverage and reinvestment of proceeds, according to the company.
The new Development Venture III fund has so far invested in the Sixty London office development project in London, as well as three developments here, including the new Coface headquarters. The fund aims to invest in both redevelopment projects and properties going up on vacant land.
AXA said in a statement that the fund had a wide range of investors, including 54% of the equity coming from pension funds, 24% coming from insurance companies and 14% from sovereign wealth funds. About 63% of the capital came from European investors, 19.5% from North America and 17% coming from the Middle East.
Laurent Vouin, head of opportunistic funds at the firm, said in the statement that while the fund is now focused on delivery of the four projects, there’s also the intention to seize on new opportunities. “We are already beginning to see a strong pipeline of potential investments which play to our skills across the full development spectrum, ranging from land or speculative developments through to refurbishments, and we expect to see a further increase in such opportunities in 2012 as real estate markets continue to adjust to the new economic environment,” he said.
While AXA traditionally focuses on its real estate portfolio in Europe, the company has expanded its presence in the United States and Asia. Assets under management are at $50.8 billion.
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