Investors Rush to Join EUR 750 Million Fundraiser for AXA Life Sciences Real Estate Fund | New


AXA IM Alts attracts around double the capital it can accommodate for a new European life sciences real estate fund.

The AXA European Life Science Strategy fund will be built around the Kadans life sciences platform acquired at the end of last year for € 500 million and seeks to raise € 750 million.

The New Mexico State Investment Council (SIC) revealed at a recent board meeting that the amount of capital interested in the fund is approximately double the capital raising target. from AXA IM Alts.

The US sovereign wealth fund approved a € 50million commitment, but told IPE Real Assets it was unsure how much of that would go into the fund. A final closure of the fund is expected in July or August.

AXA IM Alts declined to comment on the fund. In November last year, John O’Driscoll, Head of European Transactions at AXA IM Alts, said the acquisition of Kadans was a “unique opportunity to gain access to a fully integrated platform comprising an existing operational portfolio. and a vast development pipeline “.

The raised capital will give all combined third-party investors a 40% stake in the closed-end fund, the balance being held by the investors of the AXA Group.

Kadan currently has assets in the Netherlands, UK and Germany, and AXA IM Alts plans to expand the platform in these countries and other European markets including Spain, Belgium, Switzerland and the Nordic countries.

New Mexico SIC said 30% of its commitment would go to funding the existing portfolio and pipeline of developments.

This will be the first time that New Mexico SIC has invested with AXA IM Alts, and the sovereign wealth fund has said it will complement its investment in Blackstone’s real estate fund for life sciences, which is primarily focused on the United States. United.

In a board meeting report, New Mexico said the new fund was “a unique opportunity to invest in one of Europe’s leading vertically integrated life science platforms.”

“The life sciences office is a growing industry supported by strong demographic and technological tailwinds. The industry requires specialist knowledge and skills when it comes to things like building design and tenant requirements that create barriers to entry and can ultimately lead to higher rent growth and better retention. tenants.

New Mexico expects net investment returns to be comparable to value-added strategies – from 10% to 12%, using up to 50% financial leverage.

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