PARIS-AXA Real Estate Investment Managers, based here, recentlyhad the initial close of its first European development fund. About$289 million has been raised for the Development Venture III fundfrom four unnamed European investors, together with co-investmentfrom insurance companies of the AXA Group.

The company says the fund, to be capped at $755 million, willinvest in greenfield and brownfield sites, distressed propertiesand development joint ventures. The fund will target mainly office,but will include other property types. Paris will receivesignificant interest from the fund, said AXA in a statement, butother cities such as London, Milan, Madrid, Frankfurt and Berlinwill also be on the radar.

Eric Stampfli, fund director, said in a statement that thelaunch of this vehicle at this stage in the market cycle willenable the company to deliver both speculative and pre-let assetsinto targeted markets, “where we see restricted supply and strongtenant demand, offering the potential for strong value creation forour investors,” he said.