Akara Diversity PK yields 7.2 percent
The Akara Diversion PK real estate fund, which is aimed at pension funds as well as social security and compensation funds, realized an investment return of 7.16 percent in the 2017 financial year, reports Akara Funds AG.
Akara Diversity PK was launched in October 2016 and now has 46 investors, according to the initiator. The total fund assets are CHF 326.36 million, the market value of the properties is 321.27 million and the net fund assets are 282.91 million.
Akara Funds AG puts the fund's investment return at 7.16 percent, or an annualized 6.05 percent. With a distribution ratio of 91.81 percent, the distribution yield was 4.76 percent (annualized 4.02%). Income came in at 17.06 million, with rental income totaling 9.68 million. Net income, reduced by expenses, amounted to 14.66 million.
As of the balance sheet date, the fund owned 31 properties with a total value of 321.27 million. Thereafter, two additional properties with a value of 25.69 million were transferred to the portfolio. The gross yield (target) of the completed buildings was 5.49 percent and 4.18 percent net, respectively, with a rent default rate of 6.08 percent. The vacancy rate of the portfolio properties was 5.81 percent as of the reporting date. Adjusted for the portfolio properties under initial lease and under construction, 4.6 percent of the space was vacant, according to Akara Funds AG.
Of the leases for commercial properties, around 34 percent were open-ended as of the balance sheet date, the company reports. The average term of the fixed-term leases (WAULT) was 3.26 years. After completion of the buildings, the target rental income will be made up of 43 percent residential use and 57 percent commercial use.
The fund's new construction projects have an investment volume of 82.3 million, with 50.5 million still outstanding for development. Plans call for 152 to 167 high-quality apartments and 100 to 250 square meters of commercial space. In addition, refurbishments with a volume of 6.4 million are planned.
For the second or third quarter, Akara Funds intends to carry out a capital increase for the fund The aim is to build up the debt financing ratio until the payment with short-term mortgages and to repay it with the capital from the capital increase, so that this capital is fully invested three months after the payment. The aim is to largely avoid negative interest rates and maximize the return.
