The global insurance group firm, Axa has announced that it was raised €588.5 million for its European Development Venture III (DVIII).

The French firm raised the equity commitments largely from pensions funds and insurance firms. The fund is formed from; pensions (54 percent), insurance companies (24 percent), sovereign wealth funds (14 percent) and funds of funds (8 percent). This European fund will offer opportunistic-like returns to investors. The fund is aimed towards investing green and brownfield sites and properties requiring extensive redevelopment. Three prime office development projects and one in London are included in the DVIII.

The senior fund manager of DVIII, Denis Morel claims to have a number of exciting and top profile projects on board including Coface headquarters in Paris and some in London.

Around two thirds of the new commitments aroused from former Axa investors of development funds, the highest being €405 million. The previous development funds from Axa have generated a gross annual internal rate of return of over 40 percent.

Source: PERE 10/01/2012