Swiss Central City: Fresh money sought
The Swiss Central City Real Estate Fund intends to raise up to CHF 84.5 million in new funds through a capital increase. The issue proceeds are to be used for acquisitions.
As announced by the fund management company Nova Property Fund Management, the capital increase for the Swiss Central City Real Estate Fund is to take place from 25 October to 3 November 2021. With a subscription ratio of 4:1, a maximum of 760,414 new fund units will be issued at a price of CHF 111.10 each (including 1.75% issuing commission and 0.5% incidental costs). The maximum amount of the issue is 84.5 million. In the future, up to 3.8 million fund units will be in circulation. Nova Property Fund Management intends to publish the issue result and the effective number of new units to be issued on 4 November, and the new units will be paid for on 15 November.
The proceeds from the capital increase are to be used for the further expansion and diversification of the portfolio. "There are already very attractive acquisition properties in the pipeline," the fund management company informs.
Nova Property Fund Management also announces that it has received approval from the financial regulator Finma to convert the fund into a mutual fund. The amendments to the fund contract are expected to take effect in mid-December 2021. It is also planned to list the Swiss Central City Real Estate Fund on the SIX Swiss Exchange.
The fund management intends to submit the listing application after completion of the present capital increase. If it is approved, the listing of all fund units is planned for mid-December. Through the listing, the fund will also become part of the SXI Real Estate Broad and SXI Real Estate Funds Broad indices, according to the fund management. (ah)
