The manager of Norway’s sovereign-wealth fund, the world’s largest, formed a venture with Axa Real Estate Investment Managers to provide European commercial real estate debt as borrowers seek to refinance maturing loans.
Norges Bank Investment Management and Axa Real Estate, the property unit of Europe’s second-largest insurer, will supply individual senior loans as large as 600 million euros ($814 million) mainly in the U.K., France and Germany, Axa Real Estate said in a statement today.
The amount of property debt maturing in Europe through 2014 exceeds available funding by $50 billion, broker DTZ said in a June report. The shortage creates wider profit margins, attracting insurers, debt funds and sovereign wealth funds.
“We have the capability to maintain attractive margins here,” Isabelle Scemama, global head of real assets finance at Axa Real Estate, said in an interview. “We will continue to be selective and try not to compete with the German banks that are more aggressive.”
Axa and Norges Bank will focus on providing new loans and will also consider buying existing loan books, Scemama said.
“The new difference will come from the fact that we have new capacity to lend very big amounts on a deal-by-deal basis.”
bloomberg.com
Norges Bank Investment Management and Axa Real Estate, the property unit of Europe’s second-largest insurer, will supply individual senior loans as large as 600 million euros ($814 million) mainly in the U.K., France and Germany, Axa Real Estate said in a statement today.
The amount of property debt maturing in Europe through 2014 exceeds available funding by $50 billion, broker DTZ said in a June report. The shortage creates wider profit margins, attracting insurers, debt funds and sovereign wealth funds.
“We have the capability to maintain attractive margins here,” Isabelle Scemama, global head of real assets finance at Axa Real Estate, said in an interview. “We will continue to be selective and try not to compete with the German banks that are more aggressive.”
Axa and Norges Bank will focus on providing new loans and will also consider buying existing loan books, Scemama said.
“The new difference will come from the fact that we have new capacity to lend very big amounts on a deal-by-deal basis.”
bloomberg.com
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