AXA Real Estate Investment Managers (AXA Real Estate) said on Tuesday that it has been selected as partner of the Opale-Défense consortium to develop a major office project located next to Balard, the future site of the French Ministry of Defence in Paris. The project will be carried out for the group's Development Venture III fund.

AXA Real Estate will work in partnership with leading global construction company, Bouygues Construction, to deliver a new 90,000 m2 office building at the western end of the Balard site for which they expect to submit a planning application for the Wilmotte & Associés designed project later this year. Construction is expected to commence in 2012, with completion due by the end of 2014.

The project will comprise four office buildings, with delivery either in a single phase or via two phases of two buildings each. AXA Real Estate and Bouygues Construction are also aiming to obtain the relevant BBC-effinergie, HQE and BREEAM sustainability certifications.

Following this transaction, the Venture III fund has fully committed the EUR 377.5 mln of equity it has raised to date. Other acquisitions include a 20,000 m2 office building project in the City of London, and a further 40,000 m2 development project in the Paris region. Venture III recently completed a second closing in January 2011 and is targeting a third and final close of up to EUR 600 mln by Q3.

'This prestigious project gives us the opportunity to invest on behalf of our clients in a landmark office asset, which will be the largest current development of its kind in France,' said Jean-Manuel Rossi, global head of Development of AXA Real Estate. 'Our expert in-house development team will work closely with Bouygues Construction throughout every phase of the project as we ultimately aim to deliver one of France's most prestigious office buildings.'