SPA Real Estate Switzerland achieves 3.32 percent investment return
The SPA Immobilien Schweiz investment group is satisfied with the past financial year. According to provisional figures, the fair value of the portfolio increased from around CHF 1.4 billion to CHF 1.6 billion.
According to the Swiss Prime Investment Foundation investment group, the leverage ratio fell from 24.13% to 16.72% within a year. The reasons for this were the third issue of around CHF 221 million completed in September 2018 and acquisitions of residential properties. The vacancy rate in the portfolio had decreased from 5.93% to 4.57%. The net asset value was CHF 1,106.51 per claim. The investment return is put at 3.32%, up from 3.23% at the end of 2017.
According to SPA Immobilien Schweiz, the most important events in the 2018 financial year included the start of construction on the Gestadeckplatz project in Liestal as well as the Start of dismantling at Leuenhof in Zurich. The handover of the newly renovated space is planned for the third quarter of 2020, he said. The building zone and design plan for the Riverside Arael in Zuchwil has become legally binding.
Numerous acquisitions
In addition, the investment group acquired residential properties in Geneva and a residential portfolio with nine properties in the city of Bern and the surrounding area. In addition, the transfer of ownership of three properties on the Riverside development site in Zuchwil has taken place. The market value of the acquisitions totaled 93.3 million. The target rental income is around 3.1 million and was recognized pro rata as of November 2018.
The acquisition of ten properties in the amount of 228.4 million in December 2018 had an impact on the result in the new year. The target rental income for the five residential properties and the five mixed-use properties will be 9.7 million, SPA Immobilien Schweiz said. Further, for one residential property for 9.5 million with a target rental income of 0.6 millionne, the contract was signed in December. The transfer of ownership is expected to take place in February or March 2019.
Fourth issue planned
The investment group has development projects worth 500 million in the pipeline over the next five years. A fourth issue is planned to finance them and further acquisitions. The opening of the SPA Immobilien Schweiz investment group will have a size of up to 300 million and is scheduled for February 20 to April 10, 2019.
The issue is open to both existing and new investors, who are allowed to invest in tax-exempt investment foundations under Swiss law. Further details are to be communicated in the second half of February. (ah)
