Helvetia launches new fund in June

Helvetia Holding announces that the subscription period for the Helvetia (CH) Swiss Property Fund will take place from May 6 to 27, 2020, with the launch of the new fund scheduled for June 3. Originally, the subscription period was supposed to start on March 23, but Helvetia postponed the date because of the Corona pandemic.

The initial issue is aimed at qualified investors and has a volume of up to CHF 450 million. Helvetia Group will also invest in the fund, according to the fund management company Helvetia Asset Management. The proceeds of the issue will be used to acquire a broadly diversified real estate portfolio with 29 properties and a total value of around 532 million from Helvetia Swiss Life Insurance Company.

The portfolio reportedly consists of 23 residential properties and six mixed-use residential and commercial properties in or in close proximity to major cities or regional centers. Geographically, the properties are spread across the regions of northwestern Switzerland (28% of market value), Zurich (19%), Lake Geneva (18%), eastern Switzerland (10%), central Switzerland (9%), Bern (7%), western Switzerland (7%) and southern Switzerland (3%). The residential share is 83% of the target rental income, and the vacancy rate is 3.3% as of mid-April 2020, the fund management company said.

The portfolio will be built up primarily through transactions from Helvetia Insurance's insurance portfolio, which will give the fund stable rental income from day one, it adds. In addition, selective acquisitions will also be made on the market.

The real estate management of Helvetia Versicherungen continues to provide the management and construction fiduciary services for the properties. Zürcher Kantonalbank acts as custodian bank and distributor. After the launch, Bank J. Safra Sarasin will ensure over-the-counter trading. Listing on the SIX Swiss Exchange is intended in three to five years. (ah)