SPA launches new investment group
With the SPA Living+ Europe investment group, Swiss Prime Investment Foundation is launching a new product on the market. It invests in residential uses throughout Europe, in particular in properties for senior citizens.
Following the launch of the SPA Real Estate Switzerland investment group in 2015, SPA Living+ Europe is now an investment group that invests in European real estate with various forms of residential use. The focus is on senior living, and other forms of use, including student housing, service apartments and micro living, will be added for diversification, according to Swiss Prime Investment Foundation (SPA). Due to demographic change, it is assumed that the demand for age-appropriate forms of housing will grow significantly faster than other forms of housing in the coming decades.
The target portfolio is to be geographically broad-based and generate a target return of 4% to 5%, SPA said. Initially, the focus will be on the core markets of Germany and France, but investments in Belgium and the Netherlands will also be examined, it said. In the later growth phase, other European countries - outside Switzerland - may be added, according to SPA.
The first issue of SPA Living+ Europe will take place between October 1 and December 22, 2020. Investors can choose between the variants SPA Living+ Europe unhedged and SPA Living+ Europe hedged.
The investment and asset manager of the new investment group will be Capital Bay, which will also take over the property management of the real estate. Capital Bay manages more than 7 billion euros in assets under management at 21 locations with over 250 employees worldwide. Its sister company 360 Operator is active in the micro living sector.
The asset manager and issuing partner in Switzerland is Swiss Prime Site Solutions, which has been the real estate asset manager of the Swiss Prime Investment Foundation's real estate portfolio since 2017. (ah)
