At Avadis, Tamila Chaouche Trapella looks after pension fund clients in French-speaking Switzerland. In this interview, she explains current issues facing these pension funds in the real estate market, the key considerations involved in non-cash contributions and the nature of her role as an intermediary.
Tamila Chaouche Trapella, Customer Service - Investments, Romandy
What are the current issues facing Romandy pension funds in the Swiss real estate segment?
The pension funds remain committed to real estate as a key factor for diversification and stability. They aim to generate sustainable returns for current and future pensioners without increasing risk or volatility.
Some pension funds opt for hybrid allocations of direct property investments, which offer the advantage of control and stable rental income, and indirect property investments, which allow for greater diversification and higher liquidity.
Last but not least, pension funds are also looking at ways to develop and manage their property portfolios in light of changing energy standards and regulatory developments in the coming decades.
What benefits does the presence in Lausanne have for Avadis when it comes to working with pension funds in Romandy?
Our presence in Lausanne, which dates back close to 20 years, is very important. Trust develops over time and is built on communication and knowledge of local circumstances. Operating in the same environment as our clients means that our relationships are particularly constructive. This is crucial when a pension fund is considering a non-cash contribution or an investment. Pension funds know that Avadis has a good grasp of the local conditions – from cantonal tax legislation to local regulations.
Firmly established in the Romandy real estate market
The Avadis Investment Foundation manages assets in excess of CHF 5 billion in the Swiss real estate segment. Residential and commercial properties in the French-speaking cantons account for around CHF 1.5 billion of this total. The properties in Romandy are managed by a real estate team in Lausanne.
In your experience, what are the key factors for a successful partnership when a pension fund considers making a non-cash contribution?
First and foremost, a non-cash contribution is an agreement: the buyer must be convinced that the property is worth including in their portfolio, while the property owner must be satisfied with the terms of the transaction and the prospects for development.
It is essential to thoroughly understand the implementation process. The sequence of technical audit, independent assessments and due diligence must work smoothly. Thanks to extensive experience in handling numerous non-cash contributions, this process is well-established at Avadis, allowing more time to focus on the more technical or sensitive aspects. Legal and tax considerations also play a role. With laws changing on a regular basis, it is important to have expert guidance on these matters.
And last but not least, it is all about transparency and aligning interests: clear communication regarding objectives, framework conditions and timelines is key to building trust and laying the foundations for lasting collaboration.
What keeps you motivated in your role as interface between investors and the Avadis real estate team in Lausanne?
The role of intermediary is challenging as it involves aligning investors’ expectations with the options offered by our real estate team. We combine financial metrics with practical experience, turning vacancy rates (or WAULT, for those who enjoy the jargon) into more than just numbers: they represent transactions, negotiations and the progress of construction projects. In my role, I highlight the value of our work in our interactions with pension funds. Geographical proximity, understanding of local conditions and direct access to the operational teams are key advantages in this regard.
Benefit from the Avadis Investment Foundation’s non-cash contribution scheme
The real estate investment groups of the Avadis Investment Foundation stand out for their stable performance, low costs and high-quality locations and properties. Non-cash contributions can be made to any of the vehicles.
