Helvetica Swiss Commercial continues to buy

As part of off-market deals, two properties in well-connected locations in the city of Zurich and near Zurich Airport were acquired for a total of just under CHF 38 million. According to the fund management, the weighted gross yield of the new acquisitions is 6.2 percent.

The property in Zurich, which is leased to various users, is located in an excellent location for offices within walking distance of the Altstetten S-Bahn station. Helvetica Property Investors puts the gross-actual yield of this acquisition at 6.75 percent. "We were able to acquire the property significantly below the new construction costs of a comparable property in the same location," says Hans R. Holdener. For the CEO and Managing Partner of Helvetica Property Investors, Zurich-Altstetten is one of the most attractive growth markets and office locations in the city of Zurich.

The second multitenant property is located close to the highway between Zurich and the airport and is reportedly under a five-year fixed lease to a local and solid company at attractive rents; the tenant has an option to extend the lease for another five years after 2022, according to the statement.

Already at the beginning of 2017, Helvetica Property Investors reported the acquisition of a property worth around CHF 16 million in the city of St. Gallen for the fund. At the end of 2016 and taking into account the positive valuation gains, the gross-actual yield was 5.66 percent, according to the company. With the two purchases in Zurich and the surrounding area, the fund's gross-actual yield would rise to 5.8 percent; the fund volume would grow to CHF 140 million. Current rental income is estimated at CHF 8.13 million per year.

The fund management is currently negotiating further purchases, which should lead to further acquisitions in the coming weeks.