PARIS-AXA Real Estate Investment Managers, based here, recently had the initial close of its first European development fund. About $289 million has been raised for the Development Venture III fund from four unnamed European investors, together with co-investment from insurance companies of the AXA Group.
The company says the fund, to be capped at $755 million, will invest in greenfield and brownfield sites, distressed properties and development joint ventures. The fund will target mainly office, but will include other property types. Paris will receive significant interest from the fund, said AXA in a statement, but other cities such as London, Milan, Madrid, Frankfurt and Berlin will also be on the radar.
Eric Stampfli, fund director, said in a statement that the launch of this vehicle at this stage in the market cycle will enable the company to deliver both speculative and pre-let assets into targeted markets, “where we see restricted supply and strong tenant demand, offering the potential for strong value creation for our investors,” he said.
The company had two previous funds in 2001 and 2004. The two funds completed more than $2.9 billion of development across Europe.
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