SF Retail Properties Fund successfully launched
Swiss Finance & Property Funds AG has successfully launched its new fund SF Retail Properties Fund. With the issue of 2.7 million fund units, the fund raised CHF 270 million for the unlisted investment vehicle. The investors are almost exclusively Swiss institutional investors.
"The target size of the SF Retail Properties Fund is CHF 400 to 500 million due to the planned continuous capital growth," explains Thomas Prajer of Swiss Finance & Property AG
"Our new fund specializes in specialty markets with products for daily needs," says Thomas Prajer, responsible for direct real estate investments at Swiss Finance & Property AG. The fund currently comprises 32 properties with a focus on the regions of Western Switzerland, Lake Geneva and Berne, where three quarters of the properties are located, he said. The main tenant in the sales areas of the real estate fund is a leading Swiss retail company. The allocation and payment of the fund units from the oversubscribed issue already took place in August 2015.
"The target size of the SF Retail Properties Fund is CHF 400 to 500 million due to the planned continuous capital growth," Prajer explains. The net initial yield based on the portfolio purchase price is stated at over 5 percent. An investment return of over 6 percent is planned, he says. A sustainable dividend payout of more than 4 percent of NAV is the long-term goal. "The following three factors were particularly important to us in acquiring the portfolio: these are locations with potential for value growth, all of the properties are leased to tenants with good credit ratings, and the properties can also be used by third parties," Prajer added.
For optimal value enhancement and efficient further development of the portfolio, the team of Swiss Finance & Property Funds AG will be supplemented with an experienced portfolio manager in the retail sector, the company also announces. (mr)
