Swiss Central City seeks fresh capital
The Swiss Central City Real Estate Fund is conducting a capital increase from March 10 to 27. The volume is expected to be up to CHF 47.1 million.
As part of the issue, each existing unit of the fund will be allocated one subscription right, and two subscription rights entitle the holder to subscribe to one new unit, the fund management announces. A maximum of 445,186 new units are to be issued at a price of CHF 105.70 (including 1.5% issuing commission and 0.5% incidental costs). The fund intends to use the proceeds to expand its real estate portfolio.
The Swiss Central City Real Estate Fund has built up a portfolio of six properties in its first extended financial year since its launch on December 5, 2018. To this end, the fund management company Nova Property Fund Management has invested in the city centers of Basel, Geneva, St. Gallen and Zurich. As of January 27, 2020, it also notarized a purchase agreement for a portfolio of properties in Basel-Stadt. The market value of these properties is around CHF 60 million, it said in a statement.
Investment return of 3.17%
The fair value of the properties as of December 31, 2019 was 154.2 million. Rental income for the extended fiscal year from December 5, 2018 to December 31, 2019 was 2.0 million and comprehensive income was 2.8 million. The Fund's operating profit margin is estimated at 50.07%. The rent default rate excluding projects was 12.64%, the fund added. The revaluation of properties as of the 2019 year-end resulted in an overall appreciation of the portfolio by 2.8 million or 1.84%, it added. The gross return is 4.03%, it added.
The total fund assets of Swiss Central City were 160.8 million as of December 31, 2019, with net fund assets of 91.9 million. This corresponds to a net asset value of CHF 103.17 per unit as of December 31, 2019. The investment return per unit thus amounted to 3.17%. (ah)
