Kyobo AXA Asset Management Launches Dedicated Fund for Global Real Estate Joint Investment

[Asia Economy Reporter Minji Lee] Kyobo AXA Asset Management announced on the 4th that it has launched Kyobo AXA Global Real Estate Joint Investment Specialized Private Real Estate Investment Trust No.1 (hereinafter referred to as ‘Global Real Estate Joint Investment No.1’ or ‘this fund’), which invests in promising real estate sector portfolios in major countries in Europe and Asia.

Global Real Estate Joint Investment No.1 is a fund launched to co-invest in a global real estate fund established by AXA Investment Managers (hereinafter ‘AXA IM’), a global asset management company’s alternative investment division called ‘AXA IM Alts.’ AXA IM Alts is one of the major real estate asset managers in Europe, managing 162 billion euros as of March this year.

Amid rapid changes in market conditions after COVID-19, polarization by asset and sector is progressing, and competition is intensifying due to concentrated investment demand for global prime assets. Domestic institutional investors are striving to strengthen investment competitiveness to secure global large-scale portfolio investments and stable investment destinations, and accordingly, there is a trend of seeking strategic partnerships with global asset management companies.

Accordingly, Kyobo AXA Asset Management has established a dedicated fund that can co-invest in AXA IM Alts’ global real estate fund, which aligns with the real estate investment strategy and needs of the Government Employees Pension Service.

The investment destination of this fund is the European life sciences sector, and investments will be made through Kadans Life Science Partner, an investor, developer, and operator of European science parks and lab offices. The Kadans portfolio consists of 22 physical assets (167,000 sqm) located in the Netherlands, the United Kingdom, and Germany, and 8 development projects (120,000 sqm) scheduled for completion within the next three years. AXA IM Alts raised 1.9 trillion euros from institutional investors in North America, Asia, and Europe for life sciences sector investments to accelerate investment speed in this sector, among which the Government Employees Pension Service has committed 80 billion euros (approximately 108 billion KRW) through this fund.

This fund plans to start with investments in the European life sciences sector fund and is reviewing additional investment opportunities focusing on logistics, residential, and data centers in Europe and Asia, with plans to invest in at least one to two projects soon.

This content was produced with the assistance of AI translation services.