Swiss Life AM plans new real estate fund

Swiss Life AM announces the launch of its new real estate fund product for institutional investors in Switzerland in the fall. The investment focus is to be on "commercial properties of stable value in European metropolitan regions." At launch, the fund is expected to raise capital of at least EUR 250 million.

The new real estate fund intends to invest in properties in core and core-plus locations in major European cities and in European regional centers and their agglomerations. The investment focus is to be on the European core markets of Germany, Austria, France and Benelux. Investments are also planned in the United Kingdom, Scandinavia and Southern Europe. Swiss Life AG intends to make an investment at launch in order to make a long-term commitment, it says.

"European real estate investments generate attractive returns in the current low interest rate environment. They also have a low correlation with other asset classes," writes Swiss Life Asset Management. Swiss investors could significantly diversify their portfolio with European real estate investments. Other advantages include constant income from rental income and potential inflation protection.

As of the end of March, Swiss Life AM's assets under management exceeded CHF 52 billion. Together with the investments of the Group's insurance companies, the company manages assets of over 200 billion. With real estate worth around 72.3 billion at the end of 2016, the Swiss asset manager says it is the largest real estate investor in Europe.