Helvetia Swiss Property presents first annual results
Helvetia (CH) Swiss Property Fund, launched in June 2020, closed its abbreviated first financial year with net income of CHF 4.2 million.
Helvetia Asset Management is satisfied with the performance of the first financial year of the Helvetia (CH) Swiss Property Fund. The first four months of the fund were successful, and the initial portfolio consisting of 29 properties worth CHF 532.4 million performed positively despite the Covid 19 crisis. The fact that the investment return was negative at -1.97% was mainly due to one-off transaction costs for the acquisition of the portfolio.
According to Helvetia, rental income in the shortened first financial year (Sept. 30, 2020) totaled 7.2 million. Taking into account the costs incurred for maintenance and repairs, this results in net income of 4.2 million. About 83% of the target rental income is generated from residential use. The vacancy rate was 2.9%.
The fair value of the portfolio amounted to 536.1 million as of September 30, 2020. The positive change in value of 3.7 million (+0.7%) was mainly due to the continued high demand for income properties in good locations, which caused the discount rates used to fall slightly, Helvetia said.
The real estate portfolio is expected to grow in the coming years, Helvetia adds. According to the fund management, the investment focus is on properties in the cities of the high-growth economic regions and their catchment areas, which enable stable rental income. The portfolio is to be built up primarily through portfolio transactions from Helvetia Insurance's insurance portfolio. In addition, the fund can also make selective purchases on the market. A listing on the SIX Swiss Exchange is intended in two to four years. (ah)
