Swiss Properties wants to buy for 500 million
The Swiss Life REF (CH) Swiss Properties real estate fund is planning to acquire a portfolio for around CHF 500 million. A capital increase is to be carried out to finance the purchase.
The portfolio is currently owned by Swiss Life Ltd; the takeover has already been approved by Finma, according to Swiss Life Asset Management. According to the information provided, the new portfolio consists of 46 properties with "very high location and property quality", which are mainly located in large cities and their agglomerations or in medium-sized cities. Eleven properties are in Zurich, five in Geneva, four in Lausanne and three in Basel. According to Swiss Life Asset Management, 85% of the rental income comes from residential use; the portfolio comprises over 1,100 apartments in total.
To finance the acquisition, Swiss Life REF (CH) Swiss Properties plans to issue new shares in December 2020. Following the acquisition, the fund will have 134 properties with more than 3,200 apartments.
Swiss Life REF (CH) Swiss Properties was launched in November 2015 and listed on the SIX Exchange in June 2019. According to Swiss Life Asset Management, the annual performance since launch is 8.96%. The investment focus is on residential properties in Swiss cities or their agglomerations. As at the end of March 2020, the portfolio consisted of 88 properties with a market value of around CHF 1.27 billion. (ah)
