AXA Real Estate starts investment fund with Sumitomo

AXA Real Estate Investment Managers has signed an agreement with The Sumitomo Trust and Banking Co (STB) formalising plans to jointly set up a new investment fund for Japanese real estate.

Expected to be launched in the first half of 2010, the new fund aims to raise approximately 50 billion Yen (AUD$585 million) in capital commitments from institutional investors, including Australian and New Zealand investors, according to AXA Real Estate.

“The relationship with STB was the next step in AXA Real Estate’s plans to offer a diversified range of Asian real estate opportunities to institutional investors in complement to the firm’s established European capabilities,” said Craig Hurt, Sydney-based director of AXA Investment Managers in Australia and New Zealand.

“This fund will give Australian and New Zealand institutions access to the sourcing and asset management capability of Sumitomo and the fund management skills of the world’s fourth largest property manager,” he said.

Frank Khoo, Singapore-based AXA Real Estate global head of Asia, said: “AXA Real Estate already has an existing team on the ground in Japan, but we have chosen to tie up with Sumitomo as we feel that this tie up will greatly enhance our execution ability in Tokyo, both from the aspect of deal sourcing and asset management.”

The proposed fund will be managed by AXA Real Estate as the global fund manager, with Sumitomo subsidiary STB Real Estate Investment Management providing asset management services.

AXA Life Insurance Japan and Sumitomo have both indicated interest in the proposed fund, according to AXA Real Estate. Sumitomo is the existing custodian for AXA Life Insurance (Japan) and further collaboration talks between the parties are underway.