Akara Diversity PK plans another capital increase
The real estate fund Akara Diversity PK continued to expand its portfolio in the first half of the year. A capital increase is planned for the fourth quarter.
This will be the fifth issue of the Akara Diversity PK. According to Akara Funds, the issue volume will be between CHF 100 and 200 million and will depend on the success of purchases in the coming months and the presumably realizable real estate pipeline. The subscription period and payment are expected to take place in the fourth quarter. The aim of the issue is to increase the liquidity of the securities, expand the investor base, reduce the debt ratio and finance upcoming new construction projects.
As at the balance sheet date, 785,400 units of the Akara Diversity PK were in circulation with a total of 83 investors. The net asset value per unit is around CHF 1,065. The total fund assets amount to CHF 989.18 million, the total market value of the properties is CHF 966.88 million and the net fund assets are CHF 836.48 million. The leverage ratio is 7.96%.
In the first half of 2019, 17 development and investment properties were notarized. As at the balance sheet date, Akara Diversity PK held 75 notarized properties. The project developments, construction projects, revitalizations and notarized purchase rights comprise an investment volume of around 355 million.
The fund generated income of 20.19 million in the first half of the year, of which 15.28 million came from rental income. After deducting expenses, net income amounted to 14.79 million. Revaluations and partial purchases below market value - taking into account transaction costs and the formation of provisions for deferred taxes - resulted in an appreciation of 6.25 million or 0.77% in the first half of 2019.
Akara Funds reported a return on investment of 2.58% in the period from January 1 to June 30, 2019. The operating profit margin (EBIT margin) of Akara Diversity PK is reported to be 74.97%. The gross yield (target) of the completed buildings amounts to 4.68%. Taking into account the rent loss rate of 8.76%, which also includes unrented properties for total refurbishments and conversions, the net return on completed buildings is 3.51%. (ah)
