Pure Funds AG launches first real estate fund
Pure Funds AG is a young and independent player entering the Swiss real estate market. In November, the company plans to launch its first investment vehicle, Pure Swiss Opportunity REF.
Zug-based Pure Funds AG, which was founded in May 2019 and has been approved by FINMA as a fund management company since May 20, 2020, is launching its first real estate fund, Pure Swiss Opportunity REF, this fall. The subscription period for the targeted initial issue volume of CHF 120 million runs from November 2 to 13, 2020; the fund will be paid on November 20, 2020.
According to Pure Funds AG, the initial portfolio comprises four properties in the city centers of Lucerne, Solothurn, Thun and Yverdon-les-Bains. For three of the four properties, the rental income is secured by means of purchase price retention.
The investment spectrum of Pure Swiss Oppertunity REF includes mixed-use properties in economically strong regions and in locations with growth potential. According to the company, the fund invests according to predefined ESG criteria and, in addition to traditional residential and commercial uses, also in alternative uses such as senior residences, residential with services, logistics, etc.
A GEAK (building energy certificate of the cantons) is prepared for each property; for new buildings, a GEAK B is the minimum standard. In the medium term, a portfolio with a predominantly residential share is to be built up. The target portfolio is to consist of high-yielding existing properties, supplemented by "opportunities in the area of new buildings and project developments with solid appreciation potential," according to Pure Funds AG. In the medium term, an investment return of 4% to 6% is targeted for the fund.
The investor base of Pure Swiss Opportunity REF includes institutional investors, family offices, asset managers, high net worth individuals and other qualified investors. (bw)
