Utilita: New investment foundation raises over 68 million
The new Utilita investment foundation has raised funds totaling CHF 68.7 million as part of its initial issue. It will be invested in charitable real estate.
According to Utilita, 26 pension funds and occupational pension funds (BVG) have participated in the initial issue. According to Jürg Capol, Managing Director of Utilita, "public and private pension funds of all sizes" are among the investors.
The funds collected are to be invested exclusively in non-profit real estate and land. According to the investment foundation, the focus is primarily on residential properties with cost rents as well as properties with services operated by third parties - for example retirement or student apartments or residential buildings operated by non-profit organizations or the public sector. The concrete implementation of the investment strategy is to take place immediately, with some acquisitions already secured, own projects, competitions and cooperations with cities or municipalities.
The initiators are confident that the new investment foundation will open up a promising field for investors: "Non-profit real estate offers secure long-term returns, low vacancy rates and optimal diversification from traditional real estate and other asset classes," Capol is convinced. According to Utilita, investments in the area of affordable housing or in non-profit real estate based on the principle of cost rent promise low risks and significantly higher income security than most other investment vehicles in the real estate sector.
The portfolio is to be successively expanded over the next few years, with at least CHF 40 to 60 million per year. Utilita's long-term target return on investment is in the region of 3.5 to 4.5 percent; the direct distribution to investors is expected to be 2.5 percent (reference interest rate of the Federal Office for Housing plus 1 percent). Only pension funds or pension schemes under the BVG are eligible as investors.
Vontobel Asset Management acted as distribution partner for the initial issue, with the subscription period running from June 27 to September 14. The first payment will be made on September 22. A second payment is planned within twelve months.
