Helvetica Swiss Commercial: Investment return of 4.17 percent
The Helvetica Swiss Commercial (HSC) real estate fund has achieved an investment return of 4.17% in the first half of the year since its launch. In view of the fact that the fund was launched in a challenging market environment, the fund management describes this as "extremely satisfactory".
According to audited figures as at June 30, 2017, the HSC generated income of CHF 7.66 million, while expenses amounted to CHF 2.23 million.
Based on the six portfolio properties, net income before liquidation taxes amounted to 5.44 million, according to Helvetica Property Investors. According to the fund management company, the total profit for the accounting period amounted to 5.16 million.
The target rental income amounts to 8.95 million. With rental space of around 53,600 sqm, a rental price of CHF 155/sqm and an occupancy rate of 90.5%, this corresponds to a gross actual yield of 5.8%.
The existing portfolio amounted to around 140.3 million at the end of June 2017. The debt financing ratio is 32% and the debt ratio is 29%.
Net fund assets reached CHF 128.69 million in the first half of the year. This corresponds to a net asset value per unit of CHF 104.17 and a return on equity of 4.17% since launch in December 2016.
Helvetica Swiss Commercial invests in properties with value appreciation potential in the most important economic areas of Switzerland. According to the fund management company, the core of the investments are properties that offer an attractive operating return and are potentially undervalued. The potential of the properties is to be increased through revitalization, refurbishment, reduction of vacancies and extension of rental agreements. The aim is to have a broadly diversified portfolio in terms of regions, types of use, property sizes and tenant mix.
