Swiss Life fund plans purchase of 500 million portfolio
The real estate fund Swiss Life REF (CH) Swiss Properties intends to acquire a real estate portfolio worth CHF 500 million from Swiss Life. The fund is planning a capital increase to finance the acquisition.
The Swiss Life REF (CH) Swiss Properties portfolio currently consists of 48 properties with a market value of around CHF 665 million. With the planned acquisition of Swiss Life's real estate portfolio worth around CHF 500 million, the fund would almost double its portfolio volume. The target portfolio is characterized by a "very high quality of location and property" and generates the majority of its rental income from residential use, according to the fund management company Swiss Life Asset Management.
It also states that Finma has already approved the transaction (in accordance with Art. 63 CISA, paragraph 4). In order to finance the acquisition, the fund intends to issue new units at the end of December 2018. The exact conditions of the planned capital increase are to be announced in the fall.
Swiss Life REF (CH) Swiss Properties was launched at the end of 2015; it invests primarily in residential properties in Swiss cities or their agglomerations, as well as in commercial properties in central locations.
