Swiss Prime Investment Foundation with positive outlook
According to preliminary figures, Swiss Prime Investment Foundation achieved an investment return of 1.5% to 1.6% in the first half of the year. For the second half of the year, the company expects growth.
Swiss Prime Investment Foundation expects to generate a higher return in the second half of the year than in the first six months of the 2020 reporting year, where an investment return of 1.5% to 1.6% (annualized 3.0%-3.2% as of June 30, 2020) was achieved. This is because, despite the Corona crisis and its economic impact, the vacancy rate continues to fall and no bankruptcies or terminations of commercial leases were recorded in the first six months, the investment foundation informs.
By the end of June, 85% of all rent reduction applications in connection with the Corona crisis had been settled, the statement continues. The remaining applications will be taken into account with corresponding provisions in the half-year financial statements.
The real estate portfolio, which was valued by Wüest Partner for the first time as of June 30, 2020, reportedly saw an increase in value of CHF13.8 million, or +0.6%. As a result, the value of the real estate, taking into account the investments made, is now 2.31 billion, up from 2.27 billion at the end of 2019. The discount rate decreased from 2.82% to 2.80%.
Swiss Prime Investment Foundation also announces that it has extended the management contract with Wincasa at reduced rates, which will sustainably reduce the cost base of the SPA Immobilien Schweiz investment group. The new terms would apply from January 1, 2021. The contract provides for further automatic reductions when SPA Immobilien Schweiz reaches predefined annual actual rental income levels, it said. For the investment group, an issue with a volume of up to 250 million is still running until July 22; it is the sixth issue of SPA Immobilien Schweiz. (ah)
