Swiss Life Swiss Properties: Fresh money sought for portfolio purchase
In order to acquire a CHF 340 million real estate portfolio, the Swiss Life REF (CH) Swiss Properties fund is carrying out a capital increase with a volume of around CHF 300 million from the end of November.
The real estate fund Swiss Life REF (CH) Swiss Properties intends to use the funds from the issue to acquire a portfolio worth around CHF 340 million from Swiss Life AG. The portfolio consists of 17 properties and, according to Swiss Life Asset Management, is characterised by a high quality of location and property. It consists of residential properties in economically strong regions, and around half of the properties are located in the cities of Zurich, Geneva and Lausanne and their immediate neighbouring municipalities.
The issue will be carried out on a commission basis ("best-effort basis") as part of a public subscription offer in Switzerland; the subscription ratio is 5:1. A maximum of 2.7 million new units will be issued. The issue price is CHF 113.50. The subscription period runs from 29 November to 10 December 2021, with payment taking place on 16 December.
Net income rises significantly
In the past financial year, Swiss Life REF (CH) Swiss Properties generated net income of 30.9 million, which is 27.4% more than in the previous year (24.3 million). A total of 35.1 million, or CHF 2.60 per unit, will be distributed to investors. According to Swiss Life Asset Management, part of this comes from the sale of a residential building in Bulle and a small mixed-use property in Basel.
As at 30 September 2021, the Fund has a real estate portfolio comprising a total of 135 existing properties and one property under construction with a total market value of around 2.0 billion. During the financial year, the Fund acquired a high-quality real estate portfolio comprising 46 properties, mainly residential, as well as a residential and commercial property in Zurich-Höngg. Properties in Bulle and Basel were sold. The market value of the properties held in the portfolio over the entire reporting period increased by 41.3 million or 2.2% (net, after deduction of investments), according to the information provided. The most important value driver was the high demand for apartment buildings and properties in central locations, Swiss Life Asset Management said. The rental loss rate is put at 3.61%. (ah)
