AXA Real Estate Investment Managers announces that it has completed €2.13 billion of transactions in Europe on behalf of clients in the first half of 2011. In line with the strategic objectives of major clients, there has been a shift in geographical focus compared to 2010, with investment flows moving away from France into other core European markets, in particular towards the UK.
As forecasted, total transactions over the first half have increased significantly across Europe, with 80 transactions comprising €1.19 billion of acquisitions and €939 million of sales completed during the period, compared to €2.7 billion of transactions undertaken for the whole of 2010.
There has been a geographical change in transactional activity over the last six months, reflecting particular client strategies. This has resulted in 46% of acquisitions taking place in the UK, compared to 25% last year and 19% in France compared to 18% last year. In addition, over 60% of sales undertaken in the first half were in France.
This shift in geographical focus was further evidenced by the announcement following the half year of the creation of a joint venture between AXA France Insurance Companies and Norges Bank Investment Management, whereby AXA Real Estate, on behalf of its client, sold to Norges Bank a 50% interest in seven assets from a Central and Paris region office portfolio with a total value of €1.4 billion. AXA France Insurance Companies expects to reinvest the equity across Europe to create a more geographically diverse portfolio.
Other notable transactions during the first half of 2011 have included the acquisition, on behalf of one of AXA Real Estate’s clients, of 20 Gresham Street, a 240,000 sq ft fully let prime central London office, a portfolio of 28 petrol stations in northern Spain on behalf of the Alternative Property Income Venture and the commitment by AXA Real Estate’s Development Venture III to develop a major office project located next to Balard, the future site of the French Ministry of Defence in Paris.
Anne Kavanagh, Global Head of AXA Real Estate Property Services Group commented:
“We have continued to accelerate our transactional activities following the progress we made last year, delivering a number of key deals to support our clients’ strategies. We have completed 80 transactions in the first half of the year, only made possible by our specialist in-house teams located across our key territories. With a further €3 billion of deals already at various stages of due diligence, we expect to continue our strong momentum for the rest of the year.”
Source : AXA Real Estate Press Release
