Axa fund RE Switzerland with investment return of 4.3%
The fund generated rental income of CHF 147.26 million in the first financial year following its merger. Five properties were acquired, while Axa sold one retail property in Berne. The proceeds will be used to increase the residential quota.
The Axa Real Estate Fund Switzerland, which was merged in March 2024, generated a return on investment of 4.3 % in the 2023/24 financial year (reporting date: September 30). This is made up of a stable cash flow return of 3.2 % and a change in value return of 1.1 %. Based on the net asset value, this results in a distribution yield of 3.1 %. Rental income amounted to a total of CHF 147.26 million in the 2023/2024 financial year. Realized income amounted to CHF 110.6 million and total income to CHF 150.6 million. Axa does not report comparative figures for the three predecessor funds as a whole in the income statement.
The merger of the Axa Vorsorge Fonds Immobilien Schweiz, Axa Immovation Residential and Axa Immovation Commercial vehicles has created the largest NAV-based real estate fund for pension funds in Switzerland with a portfolio value of CHF 4.9 billion. In the past financial year, the fund acquired a property in Neuchâtel (NE) (Faubourg du Lac 33/35/Ruelle du Fornel 2/Faubourg de l'Hôpital 54+56) and Casinoplatz 8 in Berne from Axa Versicherungen AG. Brown Boveri Strasse 12 in Baden, Rue de Saint-Jean 21-29/Avenue de Tilleuls in Geneva and the property at Bleicheplatz 1-7 in Schaffhausen were also acquired.
Six-storey retail property sold
The fund has divested itself of the commercially used property at Schauplatzgasse 33 in Berne. The fund management justifies this with the current use as retail space over six floors and the investment required for future conversion to multi-tenant use. Nevertheless, the sale price of CHF 34.50 million was significantly higher than the last valuation of CHF 25.85 million. The new funds are to be invested in residential properties, thereby further increasing the proportion of residential properties in the fund. (aw)
