Fondation Equitim: New investment group for transitional real estate
Older properties with high potential for refurbishment and value appreciation are to be upgraded in terms of energy efficiency.
A new investment group for properties in need of renovation is being launched. Under the name "Transition", CHF 100 million in equity is to be raised for the Equitim Foundation. The initial subscription period ends on December 31. A first closing is planned for this summer. This investment group is managed by the company Fundim SA, which has developed more than 40 projects worth over CHF 1 billion to date. The capital raised will be used to acquire a portfolio of residential properties in French-speaking Switzerland worth around CHF 90 million, which will then be renovated and made more energy-efficient. The majority of the properties were built in the 1950s and 1960s, with the most recent building dating from 1989.
The aim is to reach a volume of CHF 300 million by the end of 2029. "The Fondation Equitim benefits from close relationships with all public bodies as well as a network of private individuals who are interested in making purchases in sole ownership or under building rights," reads a press release. In addition, the market currently offers many opportunities, as the political pressure for energy-efficient renovations is forcing landlords who do not have the necessary skills to sell their properties. Fundim SA is being advised on asset allocation by Imvestir Partners SA, which specializes in the analysis of indirect Swiss real estate investments, particularly unlisted products.
Refurbishment for up to 25% of the purchase value
In the first ten years of its existence, the investment group will be guided by an appreciation strategy; once the properties have stabilized, a "core" strategy is planned. The acquisition profile focuses on residential properties with a value of between CHF 5 million and CHF 20 million and a gross yield of between 4.5% and 5%. 70% of the properties must be located in the cantons of Vaud, Geneva, Fribourg and Neuchâtel and have a high potential for reducing CO2 emissions. Furthermore, the work in the buildings should support the local economy. It is also desired that the rents are below the market level and therefore have a high potential. Within ten to 15 years, 20 to 25% of the purchase value is to be invested in the energy and economic transition of the building. (aw)
