Axa Real Estate Investment Managers has announced that the final close of its most recent pan-European real estate debt fund saw the firm raise a total of €2.9 billion, making it one of the largest Commercial Real Estate (CRE) senior loan funds in Europe.
Known as Commercial Real Estate Senior 9, or CRE9, the fund attracted commitments from 18 institutional investors from the UK, France, Germany, Sweden, the Netherlands, Ireland, Denmark, Belgium and Switzerland, and had an initial target of €2.5 billion.
It made history as the first real estate debt fund to be structured to allow for capital to be recycled back into the fund once loans matured, allowing investors to both continue their relationship with Axa Real Estate’s debt platform and to benefit from the risk adjusted income returns targeted by the firm.
European Head of Sales at Axa Real Estate, Charles Daulon du Laurens, said:“Real estate, having made the shift from a traditional to main stream asset class, has now become an essential allocation within any investor’s portfolio, and as we continue to secure capital across the globe, we maintain our position as the private debt investor of choice in Europe.
“In response to ever changing investor requirements, we look to continue to offer new and dynamic products to ensure we deliver value and long term income streams for our clients.”
Capital for CRE9 was originated predominantly from insurance companies and pension funds, signifying the importance major investors are now placing upon compiling a portfolio of commercial assets under the guidance of Axa Real Estate, which enjoys a leading position within the field.
The closure of CRE9 helps to further cement this position, as since September 2014 Axa Real Estate has now raised €3.4 billion after becoming the first non-banking institution to enter the European real estate debt market back in 2005.
Head of CRE Finance, Timothé Rauly, says; “Having superseded all initial fund targets, our latest close at €2.9 billion is testament to our strong performance and proven track record within the debt market.
“Through accommodating varying and dynamic investor requirements, we have successfully secured third party regulated German capital for the first time, as well as structuring the Fund to allow investors who want to keep their fund invested with us to recycle capital.”
In further news, Axa Real Estate has been awarded a separate £350 million commercial real estate debt investment mandate from a major UK pension fund, elevating the total real estate debt platform controlled by the firm to €11.3 billion. So far, €9 billion of this sum has already been invested, demonstrating the quick turnaround process employed by the firm and the ongoing determination to snap up profitable opportunities as and when they arise.
