SF Commercial Properties Fund is fully invested

Since its establishment in December 2016, the fund has received CHF 120 million. It invests in real estate throughout Switzerland with a focus on industry, logistics, commercial and retail.

According to the fund management company, properties in Lyss, Langenthal and Frenkendorf were acquired as of January 1, 2017, and a property in Spreitenbach was added as of March 1, 2017. As of the second quarter, the SF Commercial Properties Fund acquired properties in Thal, Weinfelden, Bubendorf and Dietikon.

With these acquisitions, the portfolio has been regionally diversified along the main transport axes of Zurich-Berne-Basel, the fund management company says. The properties have rental space totaling 79,577 sqm and target rental income of 9.7 million. 64.4 percent of the space is used for logistics, warehousing and industry, 26.6 percent of the portfolio is office space, and the remaining nine percent falls under special uses.

The SF Commercial Properties Fund reports rental income of 3.1 million for the first half of 2017. The fund's leverage ratio is 18.3 percent with total assets of 148.1 million. The gross initial yield of the properties is put at 6.8 percent, and the market value is 142.4 million. The aim now is, among other things, to reduce the vacancy rate from the current 9.4 percent and to increase the average lease term (3.4 years), it says. Three further properties were purchased in August 2017.