The property investment firm AX Partners has launched the Private Credit Real Estate fund, which focuses on financing high-quality, stabilised assets – a sector previously reserved solely for institutional investors – and generating a net annual return of 8%, payable as dividends or through capitalisation.
The firm plans to develop this vehicle as one of its core business areas over the next five years, with an investment volume exceeding €500 million, of which €200 will be disbursed during the first year.
The strategy is being implemented through a joint venture with a pan-European institutional partner specialising in private real estate credit, the appointment of which will be announced at the end of the year. The alliance, they said, combines AX Partners’ organisational capabilities and market knowledge with the expertise of a European manager in structured finance.
It will also provide access to the European private real estate credit market, an asset class traditionally reserved for institutional investors. Through senior financing transactions, the fund generates a recurring annual return of between 7% and 8%, with options for distribution or capitalisation.
The vehicle is structured in Luxembourg as a Raif-Sicar and will be supervised by the Financial Sector Supervisory Commission (CSSF). AX Partners stated that it has been designed as a closed-ended fund, with liquidity windows every three years – a structure optimised for asset holding companies and family businesses. They confirmed that a large proportion of its capital has already been committed.
During its first year, the fund will invest up to €200 million in property financing across key European markets, including Spain, Portugal, France, United Kingdom and Germany, through transactions involving commercial, office, hotel and residential assets that are either stabilised or part of development programmes.
