Swiss Life Fund seeks fresh money

The fund intends to use the money to acquire a portfolio of 38 properties with a volume of around 500 million from Swiss Life AG. According to Swiss Life, the portfolio is characterized by high-quality locations and properties with a focus on residential properties in economically strong regions. After the acquisition of the portfolio, the fund will have a total of 86 properties with more than 1,800 apartments.

The issue will be carried out on a commission basis ("best-effort basis") as part of a rights offering in Switzerland, with three subscription rights entitling the holder to acquire two new units, Swiss Life announced. The issue price has been set at CHF 108.00. A maximum of 3.6 million new units will be issued, giving the issue a volume of up to 380 million. The subscription period is from November 21 to December 3, 2018, and the payment is scheduled for December 10, 2018.

CHF 14.2 million profit

For the 2017/18 financial year, Swiss Life REF (CH) Swiss Properties reports a realized profit of 14.2 million, almost two percent more than in the previous year (13.9 million). Investors will receive a total distribution of 14.0 million, or CHF 2.60 per unit. Based on the off-market price as of September 30, 2018, the distribution yield is 2.17 percent.

The fund's portfolio was expanded by two properties in the past fiscal year and comprised 48 properties with a market value of around 674 million at the end of the fiscal year. The market value of the properties increased by 15.3 million or 2.4 percent.

The vacancy rate is 2.6 percent. Rental income (gross income generated) increased by 2.2 percent year-on-year to 29.3 million. (ah)