Swiss Life Fund to increase capital by 500 million
The real estate fund Swiss Life REF (CH) Swiss Properties intends to raise around CHF 500 million through a capital increase. The funds are to be used to acquire a real estate portfolio.
The capital increase will be carried out on a commission basis ("best-effort basis") as part of a public rights offering in Switzerland. A maximum of 4.5 million new shares will be issued with a subscription ratio of 2:1.
Swiss Life Asset Management plans to announce the issue price in the second half of November. It will be based on the net asset value as of September 30, 2020 - less the distribution for the 2019/20 financial year, plus the purchase into current income and an issuing commission of 2%, the company says. The subscription period is scheduled from November 30 to December 11, 2020, and the payment as of December 17, 2020.
With the funds from the issue, Swiss Life REF (CH) Swiss Properties intends to purchase a portfolio currently owned by Swiss Life Ltd. According to Swiss Life Asset Management, it consists of 46 properties with very high location and property quality. About 85% of the rental income comes from residential uses; the portfolio includes more than 1,100 apartments. The properties are predominantly located in large cities and their agglomerations or in medium-sized towns. Eleven properties are in Zurich, five in Geneva, four in Lausanne and three in Basel.
After the acquisition, the fund will hold 134 properties with more than 3,200 apartments. Swiss Life Asset Management reports that FINMA has approved the planned acquisition. (ah)
