AXA IM Alts has announced the acquisition of a research and development (R&D) facility located on the RWTH Aachen University Melaten Campus in North Rhine-Westphalia, Germany.
The asset has been acquired from a European commercial real estate company for €124 mln, and has been made on behalf of clients through AXA IM Alts’ Real Assets platform. This acquisition forms part of AXA IM Alts’ European core diversified open-ended real estate strategy, which now exceeds €5 bn of assets.
Known as The Rocks – Aachen, the asset, which was constructed in 2017, comprises 28,000 m2 of office and R&D space, alongside a 554-space multi-storey carpark and a 3,900 m2 adjacent development site. With a WALT of more than 11 years, the asset has been acquired almost fully let to a diverse range of occupiers on strong covenants, with 66% of rental income generated by public tenants.
The Melaten Campus is a major national hub for innovation and growth and home to more than 50,000 students who live and study in Aachen, West Germany[4]. The asset has been designed as a research and development facility to serve the integrated digital production sector..
This acquisition is AXA IM Alts’ 10th investment into Germany this year, with the country remaining a key strategic market for the Real Assets business. AXA IM Alts’ manages over €12 bn in German real estate and infrastructure assets across multiple asset classes, in both investment and development mandates and predominantly focused in the core metropolitan areas.
AXA IM Alts’ European core diversified strategy seeks to provide institutional investors with long-term stable income through the acquisition of high-quality core real estate assets with resilient income profiles across major cities in Europe, adopting a research led approach to capitalise on individual market dynamics and timing. The strategy has most recently grown through the issuance of an inaugural seven-year €500 mln green bond offering with an ambitious Green Finance Framework in June 2021.
Ulrike Haack, head of Transactions, Germany at AXA IM Alts, commented: 'This acquisition represents a rare opportunity to acquire a high-quality income producing asset in one of Germany’s key innovation clusters. Our local team has a strong track record in delivering successful asset management and development projects and we look forward to continuing to leverage our expertise in one of Europe’s fastest growing submarkets.'
