AXA Real Estate invests in Japan
AXA Real Estate Investment Managers has raised €130 million at the first close of its Japanese Commercial Real Estate Debt investment vehicle from a Japan-based AXA Group insurance company.
AXA Real Estate stated that additional capital funding was expected from AXA Insurance companies and third party institutions.
The real estate fund and asset manager stated it was a long-term believer in the Japanese economy and the underlying fundamentals of its real estate market despite the recent natural disasters.
“We believe that the Japanese economy, as a whole, will recover in a relatively short space of time, at which point the underlying imbalance of supply over demand in real estate lending will be the same as before,” said AXA Real Estate’s global head of Asia, Frank Khoo. “The fact that many banks in the region still have limited capacity to lend on commercial real estate remains unchanged and this presents a clear opportunity for us to satisfy some of the significant demand in the region, whilst delivering value for our investors.”
AXA Real Estate stated that the investment vehicle would be managed by an experienced in-house team of local property experts. It will be able to invest in loans of between three and ten-year terms.
AXA Real Estate stated that its total global investment capacity into debt is now over €2.7 billion.
Recommended for you
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
Ahead of the approaching end of the financial year, State Street has shared five tips for advisers who are using ETFs in their client portfolios.
The use of active ETFs in model portfolios by financial advisers is a key factor in the growth of the products for iShares, according to BlackRock.
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
