Helvetica Swiss Commercial expands its portfolio
The real estate fund Helvetica Swiss Commercial has acquired two properties for a total of CHF 54 million. The portfolio thus grows to 430 million.
According to the fund management, the two properties are in good locations in central and eastern Switzerland. The gross actual yield of the properties is almost six percent. The total of more than 20,000 sqm of retail and warehouse space currently generates around CHF 3.2 million in actual rent per year, according to the information. The occupancy rate of the two properties is around 95 percent and the weighted lease term is just under six years.
One of the properties is located in Arbon (TG). It is a "typical shopping center serving the neighborhood and surrounding region," according to Helvetica Property. The main tenant of the 10,400 sqm of retail space is a nationwide retailer that is represented with various formats in the center and wants to hold on to the location in the long term, it said. The associated underground parking garage includes 221 parking spaces.
In the immediate vicinity of the property, the city center of Arbon is being developed, among other things, there will be living space for more than a thousand people. The train and bus stations are within walking distance of the property, as is Lake Constance. Helvetica Property puts the market value at CHF 40 million. The target rental income is 2.6 million per year, and the occupancy rate is 94.6 percent.
Good time to get into retail real estate
Frederic Königsegg, CIO and Head of Investment Management, considers the timing to be good for selective entry into retail real estate. "Robust economic growth in Switzerland and the weaker franc are strengthening domestic demand. For many years, shopping tourists from Switzerland were the growth driver for retail in southern Germany. The wind has already changed last year," he says.
The second property is a warehouse building in Tuggen (SZ). The building comprises 12,580 sqm of space and is leased for ten years to a nationwide logistics company. The target rental income is 0.73 million. The market value is stated at 14.5 million.
The fund management further announced that it will continue the growth strategy of Helvetica Swiss Commercial. Further capital increases are planned to take advantage of investment opportunities. The focus is currently on the planned listing in 2019 and further portfolio expansion. (ah)
