LONDON—AXA Real Estate Investment Managers SGP has been appointed as investment manager for the Kronborg limited, a new $670 million (€485M) commercial real estate debt vehicle formed by five Danish pension funds.
Those funds are Sampension, TDC Pension, AP Pension, JØP and DIP.
The Kronborg Fund has been tailor-made to the investors’ risk appetite and is founded on an ongoing close relationship between the parties.
AXA Real Estate Investment Managers SGP, won the mandate following a competitive pitch process and, on behalf of the Fund, will invest in large size senior loans across all asset classes, including offices, retail, logistics and hotels. Targeting opportunities in Western Europe, with a focus on the UK, France and Germany, investments will be made alongside other clients within AXA Real Estate’s $10.9 billion ((€7.9B) debt platform.
This mandate confirms the leading position of AXA Real Estate’s long established CRE debt platform and co-investment programme in the pan-European CRE loan market.
“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 rate environment,” said Charles Daulon du Laurens, AXA Real Estate’s Head of Investor Relations-Real Asset Finance. “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 long-standing 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.”