Rothschild fund Erres sells in Fribourg
The real estate fund Edmond de Rothschild Real Estate SICAV (Erres) has sold the residential and commercial property Agora in Fribourg. It also presented its half-year figures.
According to Erres, the purchase agreement was signed on November 19. The Agora residential and commercial property has a leasable area of 15,190 sqm and was developed and constructed by Orox Asset Management in 2012. Erres did not provide details on the purchaser or the purchase price achieved. The sale will "generate a significant capital gain compared to the current market valuation," the fund simply informs.
At the same time, the fund published its half-year results for the period ending September 30, 2018, according to which income of around CHF 29.26 million was generated with an Ebit margin of 69.93 percent. The net asset value (NAV) was 867.86 million, corresponding to CHF 113.64 per unit. This represented an increase of 1.8 percent, or CHF 2.07 per unit, compared to March 31, 2018, after payment of the dividend. The new NAV took into account the revaluations of ten properties, Erres added. In the process, there had been "significant changes, both upward and downward" during the reporting period.
The rent default rate rose from 3.03 to 3.81 percent compared with the end of March 218. Reasons included the termination of a commercial tenant in Petit Flon (VD), and there had also been losses in connection with the bankruptcy of OVS at the property in Olten (SO). According to Erres, negotiations are currently underway in Olten, and several long-term commercial leases have been signed at the Promenade des Artisans property (GE). This will help to improve the situation before the end of the current financial year. (ah)
