Swiss Prime Investment Foundation significantly exceeds target return
Swiss Prime Investment Foundation can look back on a successful financial year 2021: The target return of the SPA Real Estate Switzerland investment group has been clearly exceeded, and the strategy of the new investment groups also seems to be paying off.
Despite the challenging market environment, the SPA Real Estate Switzerland investment group, which is primarily focused on residential real estate, was able to generate net income of CHF 74.3 million in the 2021 financial year (2020: CHF 45.3 million), Swiss Prime Investment Foundation (SPA) reports. The bottom line in the 2021 financial year was a return of 6.39% (previous year: 3.68%); the target return was between 3% and 4%. Rental income increased from CHF 71.4 million in 2020 to CHF 87.1 million by the end of the year due to the growth trajectory. 54.62% of the target rental income came from residential properties; the vacancy rate was reduced from 4.02% (Dec. 31, 2020) to 3.44% in 2021.
Portfolio strongly expanded
For the SPA Immobilien Schweiz investment group, two issues were carried out in the 2021 financial year, which raised a total of CHF 340 million for the further expansion of the portfolio. In total, the 2021 investment group made acquisitions for a total of CHF 189 million; the market value of the real estate portfolio at the end of the year was CHF 2.96 billion. Taking into account the acquisitions made and investments in the development projects, the leverage ratio decreased to a comfortable 21.13% (previous year: 26.74%) of the fair values of the properties. The weighted average borrowing rate amounts to 0.35% (0.33%) with a remaining term of 3.28 years (3.53 years).
Of the current 15 development projects of the investment group, six are now in the realization phase. In view of the pipeline with a medium- to long-term investment volume of between CHF 600 and 800 million, the SPA expects significant growth in rental income and appreciation gains for the SPA Real Estate Switzerland investment group.
First transactions for SPA Living+ Europe
SPA further announces that the two investment groups SPA Living+ Europe unhedged and SPA Living+ Europe hedged, which were launched in October 2020, completed their first transaction in mid-2021 following the initial offering at the end of December 2020 and acquired five retirement and nursing homes in Germany.
The market value of all properties is reported to be 45.72 million euros; net assets amount to 28.21 million euros.
After seven months, the investment return is 14.59% - a result that SPA management believes demonstrates "the potential of the European growth market and the senior living investment segment." (bw)
