SFP AST Swiss Real Estate plans to raise capital
The Swiss Real Estate investment group of SFP Investment Foundation plans to raise new funds in the fall to finance further growth.
According to a statement by SFP Investment Foundation, the new funds will be used for the further expansion of the real estate portfolio as well as for the repayment of debt. In building the pipeline and further acquisitions, the main focus is on residential properties in central locations and sustainable cash flows, it adds. Currently, the use split is 42% residential and 58% commercial; in the long term, the residential share is expected to reach 60%.
At the end of April 2020, SFP AST Swiss Real Estate had already raised CHF 38.2 million in a capital raising; the money was already fully invested by mid-June.
Since the end of 2019, the fair value of the portfolio has almost doubled, increasing by 93% to 199.3 million. As of the end of June 2020, the portfolio consists of 15 properties in seven cantons. The vacancy rate is 1.8% with a WAULT of approximately 6.6 years. The use split is 42% residential and 58% commercial. Annual target rental income has increased by about 95% to 8.1 million since year-end 2019.
The investment group was hardly affected by the Covid 19 pandemic due to its high residential share. Individual solutions have been found and agreements concluded with tenants affected by the lockdown. Rent losses for the current fiscal year are expected to be below 1% of net rental income, writes SFP Investment Foundation. (ah)
