Vontobel fund raises 50 million
The Vontobel Sustainable Real Estate Switzerland real estate fund received new money of around CHF 50 million from its first capital increase.
According to the fund management company, the proceeds from the issue will be used to expand the existing portfolio and reduce short-term loans. In particular, the new funds will be used to finance notarized purchases of residential properties in the cantons of Zurich, Vaud and Basel-Landschaft. Vontobel Sustainable Real Estate Switzerland invests primarily in residential properties throughout Switzerland.
The capital increase was carried out from January 16 to March 1, 2018 on a commission basis ("best effort basis") as part of a subscription offer in Switzerland. With a subscription ratio of two to one (two subscription rights entitle the holder to purchase one new share), the maximum number of 505,250 shares (issue price: CHF 99.20 plus issue commission) was issued.
According to Vontobel Asset Management, the issue was significantly oversubscribed, which is why the allocation of available shares for the free subscriptions submitted (excluding subscription rights) was reduced accordingly. The new shares will be paid out on March 12, 2018, meaning that around 1.52 million shares in the fund will be in circulation in future.
