New "Swiss Life Living and Working" real estate fund
Swiss Life Asset Managers has launched the open-ended mutual real estate fund "Swiss Life REF (DE) European Real Estate Living and Working", or "Swiss Life Living and Working" for short, under German law via its subsidiary Swiss Life Kapitalverwaltungsgesellschaft.
The investment fund will be marketed under the short name "Swiss Life Living and Working" from the second quarter of 2017 and is aimed at German private investors.
Swiss Life Living and Working" invests in German and European real estate. The investment focus is on the residential and healthcare (Living) and office and retail (Working) real estate segments. In the medium term, the fund management intends to build up a target portfolio of residential and healthcare properties, such as senior residences, nursing homes and medical centers, as well as office and retail properties.
Investments are to be made in particular in B locations in A cities and A locations in B cities (so-called ABBA strategy). According to Swiss Life Asset Managers, the aim is to differentiate itself from existing open-ended real estate funds, which focus almost exclusively on the top 7 cities in Germany.
The fund aims to achieve a performance of over 2.5% (according to the BVI calculation method).
200 million seed capital
Stefan Mächler, Chief Investment Officer of the Swiss Life Group, says "Swiss Life Living and Working" is the first new fund product in a series of open and closed-end real estate funds for institutional and private investors. Swiss Life has endowed the fund with 200 million euros in seed capital.
"With this fund, we are addressing the long-term megatrends of our time, including demographic developments in particular. People are getting older and older, and as a result the demand for healthcare real estate has already increased enormously and continues to rise," says Ingo Hartlief, CEO of Swiss Life KVG. "The demand for residential real estate is also being boosted by the positive population forecast for the residential markets in demand." By diversifying across the various asset classes, Swiss Life Asset Managers aims to achieve stable performance and optimum risk diversification.
