Mark Dutton
Big financial services house AXA intends to list its AXA Wholesale Australia Property Fund on the Australian Securities Exchange (ASX) at the end of the year.
The company announced its intention to the ASX late yesterday and said that until listing, the fund and the Australian Property Fund, which solely invests in the fund, would cease taking any additional investments and would suspend withdrawals, although quarterly income distributions would continue.
According to AXA Australia chief investment officer Mark Dutton, the listing will create the only un-geared, pure Australasian property fund that is expected to be in the ASX 200.
“In the context of the current market volatility, we see challenges ahead for the property sector which could be detrimental to our unit-holders,” Dutton said. “In particular, pressure on liquidity may force decisions in the short-term that are against the long-term interests of the fund.”
He said AXA believed the decision to float the fund would address these challenges.
