FINMA has approved the merger of three AXA real estate funds. Under the new name “AXA Real Estate Fund Switzerland”, the largest NAV-based real estate fund for pension funds in Switzerland – measured in terms of net fund assets – will be created at the end of March 2024.
The fund management company AXA Investment Managers Schweiz AG (AXA IM) has decided to convert the three real estate funds “AXA Vorsorge Fonds Immobilien Schweiz”, “AXA Immovation Residential” and “AXA Immovation Commercial” into the new fund “AXA Real Estate Fund Switzerland” as of March 31, 2024 » to unite ( see communication from November 30, 2023 ). By order of January 18, 2024, the supervisory authority FINMA approved the merger of the three real estate funds and approved the fund contract of the AXA Real Estate Fund Switzerland.
The total fund assets (GAV) of the three real estate funds amounted to a total of 4.66 billion francs as of the annual financial statements of September 30, 2023. The new AXA Real Estate Fund Switzerland will thus become the largest NAV-based real estate fund in Switzerland, measured in terms of net fund assets (NAV 3.94 billion francs).
High quality real estate portfolio
The combined real estate portfolio will consist of over 180 attractive residential and commercial properties, mixed-use properties as well as development and construction projects. The portfolio focuses on cities in high-growth economic regions and their catchment areas, with a focus on residential properties (around 60% of the total portfolio).
The new investment solution is aimed exclusively at qualified, tax-exempt employee pension schemes in Switzerland. As a result of the merger, they benefit from increased diversification thanks to a broad allocation to types of use, investment regions and an expanded investor base.
Implementation at the end of March 2024
The merger will be completed on May 31, 2024, retroactively to March 31, 2024. The calculation of the exchange ratios for the merger will be based on the audited net asset values of the funds as of the half-year financial statements on March 31, 2024, after deducting the distribution for the first half of the financial year. The properties of the respective funds are revalued for the half-yearly financial statements. The fund shares will be rebooked by the custodian bank at the end of May 2024. Fractions of fund shares will also be reimbursed to investors in cash by the custodian bank at the end of May 2024. The exchange ratios and the verified net asset values are communicated to investors in advance.
During the merger, the assets and liabilities of the transferring funds (AXA Immovation Residential and AXA Immovation Commercial) will be transferred to the acquiring fund AXA Vorsorge Fonds Immobilien Schweiz, now called AXA Real Estate Fund Switzerland. The investors in the transferring funds receive shares in the acquiring fund. With the merger, the transferring funds AXA Immovation Residential and AXA Immovation Commercial will be dissolved without liquidation.
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