AXA IM’s alternative investments fund, which targets the development of modern office and residential assets in European big-city locations, has attracted a further €800m from investors during its first closing period.

The French asset management giant’s ‘Alts’ fund has grown rapidly during its 20-year development and the latest round of capital investment fundraising, which is due to close in early 2022, is the fifth of its kind with the previous four having attracted €1.8bn. As of December 31, it had €157bn of assets under management.

It will continue to pursue its long-term capital appreciation strategy, taking advantage of investor demand for large, high-quality income-producing assets which are future fit and have strong ESG credentials and prioritising opportunities in the UK, France and Germany.

Ian Chappell, AXA IM Alts’ Head of Development & Value-Added Funds, said: “Whilst development activity slowed during 2020, a flight to safety will prolong capital targeting modern office and residential assets in prime and emerging locations with market leading technology and ESG credentials, increasingly focused on individual health and wellbeing.

“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.”

The €800m, raised from five Asian, North American and European institutions, will be invested across all asset classes, but will primarily focus on the development of office and residential assets in locations which have shown long-term liquidity and which are set to benefit from urban infrastructure investment.

To date AXA IM Alts has completed more than 300 development projects with a total value of €18bn across Europe since 2000, and currently has a further €8bn currently underway across nine countries which includes:

  • Project Mark, a 55,000 sqm office project in Munich
  • Alphabet, a 40,000 sqm office project in Bois-Colombes, Paris
  • Assembly, a 29,000 sqm part pre-let office project in Bristol

Overall AXA IM had €858bn in assets under management as of Deccember 31st, 2020.