AXA IM Alts raises record €4bn for commercial RE platform in a year
AXA IM Alts raised a record €4bn (£3.4bn) for its global commercial real estate (CRE) debt platform over the past year and forecasts further opportunities within the sector in 2025 as the gap in price expectations of buyers and sellers continues to narrow.
The alternative asset manager, which oversees €24bn of CRE assets, said that the funds raised came from investors in Europe, North America and Asia, with a third of the €4bn coming from new clients to the CRE debt platform.
Over the same period, AXA IM Alts invested €3bn into CRE loans, with the majority in logistics, residential and data centre sectors.
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The firm said that there is continued strong appetite from institutional investors for private credit opportunities in CRE, thanks to higher-for-longer interest rates and ongoing bank retrenchment from the sector.
AXA IM Alts is also targeting additional lending opportunities within ESG-focused capex strategies, amid tightening energy efficiency regulations across real estate markets.
The asset manager expects the current fundamentals supporting the sector to continue into 2025, presenting more opportunities for CRE lenders and increased deal volumes. It expects the gap in price expectations of buyers and sellers to continue to narrow, and to see more refinancings in the market.
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“This record capital raising on our real estate debt strategies reflects the growing investor appetite for private credit, including CRE debt, as well AXA IM Alts’ proven track record and reputation as a leading player in the senior and high-yield parts of the market,” said Florence Dard, global head of client group, alts at AXA IM.
“The higher returns delivered by the asset class in the current market environment have attracted new investors in Europe but also in North America and Asia, seeking yield pick-up and diversification to complement their existing private credit allocation. As the cycle progresses, AXA IM Alts’ CRE debt capabilities will continue to provide an attractive income diversification play.”
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Antonio de Laurentiis, global head of private debt, real assets at AXA IM Alts, added: “Building on its strong track record, AXA IM Alts has a boots-on-the-ground presence in global target markets for CRE debt deployment, pairing in-depth expertise across asset classes with the wraparound benefits that come with being part of one of the largest real estate investment managers in the world.
“These factors have supported our significant capital raising success over the past year and will continue to play an important role in the deployment of the balance of this latest fundraising milestone, as we seek to secure attractive returns through targeted lending into real estate projects underpinned by long-term structural trends.”