AXA IM Alts completes acquisition of German R&D facility for cEUR124 million

AXA IM Alts has acquired a research and development (R&D) facility located on the RWTH Aachen University Melaten Campus in North Rhine-Westphalia, Germany. 

The asset has been acquired from a European commercial real estate company for cEUR124 million, and has been made on behalf of clients through AXA IM Alts’ Real Assets platform, which is the leading real estate portfolio and asset manager in Europe. This acquisition forms part of AXA IM Alts’ European core diversified open-ended real estate strategy, which now exceeds EUR5 billion of assets.
 
Known as “The Rocks – Aachen”, the asset, which was constructed in 2017, comprises 28,000 sq m of office and R&D space, alongside a 554-space multi-storey carpark and a c3,900 sq m adjacent development site. With a WALT of more than 11 years, the asset has been acquired almost fully let to a diverse range of occupiers on strong covenants, with 66 per cent of rental income generated by public tenants.
 
The Melaten Campus is a major national hub for innovation and growth and home to more than 50,000 students who live and study in Aachen, West Germany. The R&D facility will benefit from information sharing across the university’s prestigious network of 16 knowledge clusters, with the Melaten campus alone being home to thirty facilities and more than 400 companies in total. The asset “The Rocks - Aachen” has been designed as a research and development facility to serve the integrated digital production sector, and hosts various e-mobility initiatives, aligning well with AXA IM Alts’ ESG goal of building for tomorrow by investing in innovative projects that capture future opportunities and mitigate risk.
 
This acquisition is AXA IM Alts’ 10th investment into Germany this year[6], with the country remaining a key strategic market for the Real Assets business. AXA IM Alts’ manages over EUR12 billion in German real estate and infrastructure assets across multiple asset classes, in both investment and development mandates and predominantly focused in the core metropolitan areas.
 
AXA IM Alts’ European core diversified strategy seeks to provide institutional investors with long-term stable income through the acquisition of high-quality core real estate assets with resilient income profiles across major cities in Europe, adopting a research led approach to capitalise on individual market dynamics and timing. The strategy has most recently grown through the issuance of an inaugural seven-year EUR500 million green bond offering with an ambitious Green Finance Framework in June 2021. The strategy has an overall above average GRESB Green Star status.
 
Ulrike Haack, Head of Transactions, Germany at AXA IM Alts, says: “This acquisition represents a rare opportunity to acquire a high-quality income producing asset in one of Germany’s key innovation clusters. Our local team has a strong track record in delivering successful asset management and development projects and we look forward to continuing to leverage our expertise in one of Europe’s fastest growing submarkets.”

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