AFIAA, the foundation owned by 20 Swiss pension funds, has sold three assets in Canada as part of an optimisation of its global real estate portfolio, IPE reports. The international property investor has sold three "non-strategic" assets in Toronto, Calgary and Mississauga, providing an 8% annual return on its capital since 2005. The AFIAA will reinvest the profits in larger, newer properties in major cities in North America, Asia Pacific and Europe.
The organisation said the assets were "fairly small properties" requiring "relatively high expenditure on management". But it added that it would continue to focus on new or recently built assets in top locations distinguished by construction quality and sustainability standards.
The aim of the investment strategy is to continue increasing the internal value of the portfolio and, in the medium term, achieve a continuous cash-flow yield of more than 6.5% (compared with 5.7% today). Last year, the AFIAA acquired the Quartermile 2 office development in Edinburgh and revealed that it was looking to make investments in Japan and India.