Axa Real Estate launches Caesar Fund

Axa Real Estate Investment Managers has launched the Caesar Fund, having raised €118m from Italian institutional investors at first close.

The Fund is targeting a €200m total equity raise with a fund size of up to €400m, once fully invested. Axa REIM in Italy will manage the fund. The Caesar Fund has a nine-year life and seeks to achieve an average annual dividend of 5.5% on invested capital and an IRR of 9%.

The equity has been raised from a broad mix of Italian institutional investors comprising social security entities, pension funds and insurance companies. A number of Axa Group companies who have invested alongside Axa Real Estate’s clients. The Fund is reserved for institutional investors and will target investment in core office properties in the euro zone and Great Britain.

The Caesar Fund is the second regulated product managed by the Axa REIM Sgr team. The first being the “Core Italian Properties Fund”, which also has a core risk profile and is reserved for institutional investors. In contrast to the Caesar Fund, CIPF is fully invested, exclusively in Italian office, retail as well as logistics properties. In the last three financial years, the Fund has generated an annual dividend of between 5% and 5.5% on capital invested.

Giorgio Pieralli, managing director of Axa REIM, and fund manager of the Caesar Fund, said: “We will begin by investing in the UK and French office markets, as we believe these currently offer the best opportunities to meet our clients’ requirements by investing in assets with highly stable long term income streams.

Pieralli said these markets are also attractive because “they now have the most acute supply/demand imbalances of all Europe’s main cities. As other markets start to recover, we expect to broaden the Fund’s investment horizons across Europe, leveraging our Pan-European network of local experts.”

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