Over the last 18 months AXA Real Estate Investment Managers has completed, on behalf of its clients, 11 value-add transactions in six European countries for a total volume of EUR1.4bn.
During 2011 AXA Real Estate identified that the nascent European economic recovery, together with a gradual softening of investors’ sentiment towards risk, was creating an opportunity to adopt value-add real estate investment strategies.
AXA Real Estate’s value-add investment strategies are primarily focussed on office, retail, logistics, hotel and alternative real estate assets in the principal markets of the UK, Germany, France and the Nordics, whilst also taking advantage of specific market opportunities in Italy, Spain, Netherlands, Poland and Belgium.
Value-add acquisitions completed in the last 18 months include:
· The acquisition of the landmark NH Grand Hotel Krasnapolsky in the centre of Amsterdam for EUR157m.
· The EUR172m acquisition of an office portfolio in Barcelona from Generalitat de Catalunya, which was the AXA Real Estate’s first office acquisition in Spain since the global financial crisis in 2008. The perceived risk rating of the country itself provided a value-add opportunity.
· The acquisition of two prime office and retail buildings at the Bodio Center business park, in Milan, from Aberdeen Asset Management for EUR63.9m, which represented AXA Real Estate’s largest acquisition in Italy since 2010.
· The acquisition of an office and light-industrial complex in the ‘Peri-Defense’ district of Paris for EUR61.8m.
Ian Chappell, head of fund management, says: “Our success in executing value-add transactions is the result of aligning our market judgement and agility, with the appetite and investment requirements of our clients. We look forward to maintaining our value-add momentum and leveraging on our local asset management teams to deliver investment performance through this strategy.”