HSC Fund on shopping spree
The Helvetica Swiss Commercial Fund (HSC Fund) has announced the purchase of a mixed-use commercial property in Arbon in the canton of Thurgau. Furthermore, a property in Versoix was acquired as planned in May after the canton of Geneva did not exercise its statutory right of first refusal.
On July 13, 2020, the HSC Fund signed a purchase agreement for a mixed-use commercial property in Arbon (Canton Thurgau). According to the fund management company, the property will be acquired retroactively to July 1, 2020. According to the information, the property is in a well-developed and commercially intensive location not far from the highway. The acquired plot measures around 35,000 square meters; the property, which was built in various years, comprises around 22,500 square meters of rentable space; various tenancies generate income of around CHF 1.4 million per year. The current average rent is low and stands at CHF 65/sqm/year. The fund management puts the actual return on invested capital at around 5.5%. The occupancy rate is around 99%; the average contract term of over 5 years is well above the average of the current HSC Fund portfolio.
According to Helvetica Property Investors, the FTI (Foundation pour les terrains Industriels) had a statutory right of first refusal for the purchase of a modern, mixed-use commercial property in Versoix in the canton of Geneva with a market value of CHF 31.14 million, which was notarized on 30 April 2020. After the FTI did not exercise this pre-emptive right, the transfer of benefits and encumbrances in favor of the HSC Fund took place retroactively as planned on 1 May 2020.
"When acquiring the commercial property in Versoix, the main focus was on the high security of future cash flows. In Arbon, we are acquiring a commercial property that is easy to let and still has the potential to increase rents in the medium term," says Frederic Königsegg, Chief Investment Officer. With the acquisitions in Arbon and Versoix, the HSC Fund has increased the total volume of its portfolio by around CHF 57 million to almost CHF 705 million. (bw)
