Prudential in the US is financing a Canadian property portfolio, while in Europe, Aviva has launched a hotel fund and Axa is in the process of buying back France's tallest building.
Prudential finances industrial portfolio in Toronto
Prudential Mortgage Capital Company has provided C$195m ($148m) in permanent financing to property investor Prologis for an industrial portfolio in Toronto.
Prudential Mortgage Capital Company is the commercial mortgage lending business of PGIM ($947bn in assets under management), the global investment management arm of US-headquartered Prudential Financial (more than $1trn in AuM as of 30 September 2015).
The 10-year loan is secured by a fully leased eight-property portfolio of nearly 3.5m sq ft across the Greater Toronto Area. This area "is the third-largest industrial market in North America, and we are excited to enter it by financing these new Class-A assets," said Christy Lockridge, principal of originations at Prudential Mortgage Capital Company.
Aviva launches hotel fund
Across the Atlantic, two other real estate-related operations were announced this morning.
Aviva Investors Real Estate France and hotel investor Algonquin have launched Primotel Europe, a regulated investment fund focused on the hotel market and aimed at institutional investors.
The portfolio, which has a total available equity of €240m to invest over three years, will include French and European city hotels from three to five stars, with a participation in either real estate only or both real estate and operations. Aviva financed the fund's first acquisition in December with €40m. Algonquin will remain a minority equity investor and will be the operating partner of the fund.
Axa buys tallest building in France
Finally, Axa has agreed to buy an iconic property close to home.
Axa Investment Managers - Real Assets is to acquire the Tour First office tower via a share deal from affiliates of Beacon Capital Partners. The deal was done on behalf of a club of investors seeking investments into core European real estate assets.
The tower is the tallest building in France and is located in the La Défense business district of Paris. It is 231 meters high and comprises over 80,000 sq m (863,500 sq ft) of prime office space across 44 office floors. Axa IM – Real Assets originally sold 50% of the property to Beacon Capital Partners on behalf of one of its clients in 2007. Axa and Beacon then re-developed the building, and upon completion, Beacon bought the rest of it via a share deal in 2011.
Several divisions of Axa (Investment Managers, IM Real Estate, and Life Invest) have their Paris offices located close to the Tower.
Axa IM Real Estate has developed 250 projects in six European countries for a total of €11.1bn in the last 15 years, and currently has €10.8bn in projects under development, as of September 2015.
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