France’s 100% SRI fund ERAFP awards new €350m property mandate

AXA REIM wins the brief, CBRE and LaSalle on stand-by.

AXA Real Estate Investments Managers has won a ten-year property mandate that could be worth up to €350m from ERAFP, the €14bn 100% SRI pension fund for French civil servants, local authorities and the public hospitals sector. CBRE Global Investors France and LaSalle Investment Management will be the stand-by managers for the mandate.
AXA’s brief is to manage a portfolio of unlisted real estate assets located in OECD countries in Europe. The investments will be made principally in offices and retail premises, but could also include residential and logistic sectors. ERAFP said it will look at a maximum allocation of €350m to the portfolio over the next three years.
Paris-based ERAFP is also one of the fastest growing public pension funds in the world in terms of members with nearly 4.5 million beneficiaries, 45,000 employers and close to €1.75 billion in contributions each year.The latest property mandate is the second slug of real estate capital the fund has awarded this year. In March the fund awarded a 10-year contract to AEW Europe SGP for a €310m real estate mandate for an unlisted property portfolio in France including investment in offices and retail premises, housing and student accommodation.
At the time, ERAFP said it was looking at other real estate asset classes such as logistics facilities and serviced accommodation.
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A signatory of the UN Principles for Responsible Investment, in 2006 ERAFP adopted an SRI Charter based on the following five fundamental values: respect of the right of law and human rights; social progress, social democracy, the environment; and proper governance and transparency.