SFPF: New fund for commercial real estate
Swiss Finance & Property Funds AG plans to launch a new real estate fund, the SF Commercial Properties Fund, in the second half of November.
The fund aims to invest in a diversified real estate portfolio of properties with industrial, logistics and other commercial uses throughout Switzerland along the main transport axes. The target allocation of the portfolio aims for 75 percent industrial, manufacturing and commercial, 15 percent office properties and 10 percent special purpose properties. In particular, properties with "excellent transport links or in central locations, solvent tenants and a wide range of possible uses" are of interest, Swiss Finance & Property Funds says. Currently, a pipeline of seven properties with a total value of around CHF 175 million is being examined.
The initial volume of the fund is CHF 120 million and is expected to increase to between CHF 500 and 600 million within five years. The target investment return is 5.25 percent, with a minimum distribution of 3.5 percent. The new fund has reportedly already been approved by FINMA and is aimed at qualified investors. (ah)
