Akara Funds buys western Switzerland portfolio
Akara Funds acquires the portfolio of Patrimonial Suisse. It is thus acquiring nine properties in the city of Geneva and western Switzerland for the Akara Diversity PK. The properties are valued at around CHF 113 million.
As announced by Akara Funds, it will acquire all shares in the holding company Patrimonial Suisse and its three subsidiaries for transaction costs of CHF 88 million as of May 31, 2018 with the purchase of the properties. Over the next five years, further transaction costs of CHF 22 million will be incurred, bringing the calculated total investment costs to CHF 110 million.
The nine properties in the portfolio reportedly have a market value of around 113 million. "We are looking into divesting certain properties in the canton of Neuchâtel over the next few years," says Jonathan van Gelder, CIO of Akara Funds AG. The portfolio has rental potential that is to be exploited through renovations and extensions over the next few years.
Akara Diversity PK recently completed its second capital increase, which injected around 194.6 million into the fund's coffers. At the time, the fund management had announced that it would invest the funds by the beginning of July. According to Akara, the recent purchase of the portfolio has enabled the fund to acquire strategically important investment properties for the diversification of the fund. The acquisition increases the proportion of properties in the Geneva and French-speaking Switzerland regions from six to 31 percent. 87 percent of the properties are residential properties, increasing the proportion of residential properties in the fund from 34 to 47 percent.
The portfolio includes the properties at 33 Avenue Pictet de Rochemont and Rue du Clos et de l'Indiennerie in Geneva's "Eaux-Vives" residential district on the left bank of Lake Geneva, as well as the residential and commercial building at 89 Rue de Carouge in the "Plainpalais" residential area around 2.7 km south of Geneva's main railway station.
