HSO Fund on course for growth
Helvetica takes positive stock of the first half of its Helvetica Swiss Opportunity Fund (HSO Fund) launched at the end of 2019. In the meantime, a portfolio worth around CHF 66 million has been built up.
In its initial offering in the fourth quarter of 2019, the Helvetica Swiss Opportunity Fund (HSO Fund) raised CHF 50 million, invested in three special properties in Wädenswil (ZH), Rümlang (ZH) and Schaffhausen. The properties have been valued at a market value of 51.1 million as of June 30, 2020. The gross-actual return is estimated at 6.9%. After the balance sheet date, HSO Fund expanded its portfolio to around 66 million through the transfer of ownership of a special logistics property in Schaffhausen worth 15.2 million. The new property will increase the portfolio's target rental income to approximately 4.3 million per annum.
In the first half of 2020, HSO Fund had rental income of 1.6 million; occupancy was 98.2%. The overall impact of the lockdown on rental income would be small. If a proposal were made to all affected tenants - regardless of their rent level and therefore regardless of any legal entitlement - that would comply with the new legal framework, there would be a one-time provisioning requirement of around 0.12 million at the overall Fund level for the 2020 annual results. Adjusted for tenancies without a legal entitlement, this would result in a provisioning requirement of around CHF 10,000, which corresponds to 0.3% of the Fund's total annual target rental income.
Net income for the reporting period was 0.7 million and total comprehensive income was 1.9 million. Total fund assets as of June 30, 2020 amounted to 67.0 million and net fund assets were 51.9 million. The net asset value per fund unit reached CHF 103.85, representing an increase in value of 3.85% since the initial issue.
For 2020 as a whole, the fund management is holding out the prospect of a distribution of between CHF 4.50 and CHF 4.75 per fund unit. For further expansion of the portfolio, a capital increase is being considered and is expected to take place in October. (ah)