Solvalor 61 increases earnings and fund assets
The real estate fund Solvalor 61 shows an increase in net income of 2.1% for the first half of the fiscal year. Total assets increased by 5.6%.
Total assets of the Solvalor 61 fund, which focuses on residential real estate in western Switzerland, reached around CHF 1.2 billion (+5.6%) as of December 31, 2020. The growth was mainly due to new construction projects in Nyon (VD), increases in Pully (VD) and Geneva, and a renovation in Lancy (GE), the fund management says.
Half-year net income increased by 2.1% to 12.5 million, in addition, half-year rental income reportedly increased by 3.7% compared to December 31, 2019.
According to the fund management, the reasons for the growth are in particular rental income from the building acquired in Geneva in the past fiscal year (Rue Guye 1-7), the rental of the 38 renovated apartments in Lancy and the additions to the buildings in Geneva and in Pully. At the same time, the Group had succeeded in limiting the level of rent losses to 2.2% despite the renovations. On the other hand, the structural share of vacant apartments had remained stable compared to December 31, 2019.
For the second half of the financial year, Solvalor 61 expects rental income to increase: In Nyon, the completion of 66 new apartments in two stages at Chemin Falconnier 33-39 and another 61 at Allée de la Petite Prairie 16-18 will lead to an increase, it says.
In 2023, the completion of 40 apartments in a new building in Lausanne is expected; construction work started in December 2020. In addition, the fund management recently invited tenders for three other increase projects. (ah)
