AXA IM raises €800m for BTR and offices

AXA IM Alts has secured €799m (£691m) in the first close of its fifth-generation development strategy. The equity was raised from five Asian, North American and European institutions, including investors into AXA IM Alts’ four generations of previous development strategies. AXA IM Alts will invest in opportunistic long-term assets, targeting residential and offices in France, the UK and Germany, but with the flexibility to include other European markets. The fund will back build-to-rent residential assets, through converting old office stock and new-build development. Schemes will provide middle-income and affordable homes. The new strategy will seek to employ sustainable building designs with tech-enabled flexible working and focus on health and wellbeing in the office. Ian Chappell, head of development and value-added funds at AXA IM Alts, said: “With Covid-19 disrupting development pipelines, coupled with reduced competition and a retrenchment from the space by some of the more traditional players, we see an opportunity at all stages of the development cycle to create buildings that deliver environmental performance and long-term economic value, for both investors and users. “Whilst the office sector has been characterised by uncertainty around future occupier need, it will remain an essential amenity for businesses to attract talent and we expect to see increased demand for CBD locations. We have several very promising residential and office projects in our pipeline which are advancing well, and which evidences our convictions.”   To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette