Axa: Green light for fund merger
The Swiss Financial Supervisory Authority has approved the merger of three of the insurer's real estate funds to form the largest NAV-based real estate fund for Swiss pension funds.
According to a statement from Axa, Finma approved the fund contract for the new Axa Real Estate Fund Switzerland in a ruling dated January 18. This means that the largest net fund assets of a NAV-based real estate fund for pension funds in Switzerland can now be created by the end of March 2024.
The total fund assets (GAV) of the Axa Immovation Residential, Axa Immovation Commercial and Axa Vorsorge Fonds vehicles amounted to CHF 4.66 billion as at September 30. It comprises over 180 residential and commercial properties, mixed-use properties and development and construction projects. The portfolio focuses on cities in high-growth economic regions and their catchment areas, with residential properties accounting for 60% of the total portfolio.
The fund is aimed exclusively at qualified, tax-exempt pension funds in Switzerland. "As a result of the merger, they will benefit from increased diversification thanks to a broad allocation in types of use, investment regions and an expanded investor base," writes Axa. The merger will be completed on May 31 with retroactive effect to March 31 of this year. The calculation of the exchange ratios for the merger is based on the audited net asset values of the funds as at the end of March, and a new valuation of the properties will be carried out. (aw)
