Capital increase planned for AXA Immovation Residential

As announced by the fund management, AXA Investment Managers Schweiz AG, a capital increase for the real estate fund AXA Immovation Residential will take place in June 2017. According to the information, new units in the amount of approximately CHF 80 million will be issued. The proceeds of the issue are to be used for the further expansion of the investment portfolio and the repayment of short-term debt.

The issue price will consist of the net asset value of the semi-annual financial statements as of March 31, 2017 plus accrued income up to the payment date as well as incidental purchase costs and the issue commission. The issue will be carried out in compliance with the subscription rights of existing unitholders. The exact terms of the planned capital increase will be announced in mid-May 2017.

The AXA Immovation Residential real estate fund was launched in 2013 and invests in Swiss residential properties. Units can be subscribed by qualified, tax-exempt investors in Switzerland. According to the fund's management, the residential real estate portfolio aims for "stable and continuous performance and distribution." Investments are focused on cities in high-growth economic regions and their catchment areas. Investments are made in both existing properties and development and construction projects, with at least 80 percent of total rental income to be generated from residential use.