Swiss Central City expands portfolio by 20% in H1
The Swiss Central City Real Estate Fund acquired five properties in Basel-Stadt, Geneva and St. Gallen in the 1st half of the year. The market value of the properties increased by 20 % to CHF 577.3 million.
According to Nova Property Fund Management, the acquisitions include a residential property in Basel, a commercial property in Geneva as well as a mixed-use property and two projects for future residential use in St. Gallen. Annualized target rental income excluding projects increased by 13% to CHF 18.4 million. In the 1st half of the year, rental income increased by 45% to CHF 8.3 million, while the rent default rate excluding projects decreased by 2 percentage points to 4.62%. Net income, on the other hand, improved by 38% to CHF 5.3 million. Revaluation resulted in an unrealized gain of CHF 4.4 million (H1 2021: CHF 3.7 million), mostly due to revaluation gains on acquired properties, a renewed slight reduction in discount rates and investments in ongoing projects. The total income of the fund increased from CHF 6.5 million to CHF 7.3 million compared to the same period of the previous year. On the other hand, the annualized return on investment decreased from 4.1% to 3.6%.
Acquisitions in Basel for CHF 20 million
The fund manager Nova Property also announces that two residential properties and one mixed-use property in Basel with a total value of around CHF 20 million were acquired after the balance sheet date. As a result of the acquisition, the rental income share from residential use has increased from 48 to 50% since mid-year. (aw)
