SPS fund with investment return of 5.75% in first fiscal year
Swiss Prime Site Solutions Investment Fund Commercial (SPSS IFC) sees opportunities in the current environment, but will significantly downsize the announced issue.
The issue is now to have a maximum size of CHF 36.9 million. A corridor of CHF 50 to 100 million had been announced in September. The proceeds will be used for the further expansion of the real estate portfolio. There is an "attractive, partly exclusive acquisition pipeline with core+ properties and broad diversification in the amount of approximately CHF 140 million". The rights issue will take place from November 21 to December 2. A maximum of 353,262 new shares will be issued. One subscription right will be allocated to each existing share. The issue price per share is CHF 104.46 net.
In its first financial year, Swiss Prime Site Solutions' first real estate fund purchased 16 properties with a market value of around CHF 346 million and raised a total of CHF 213 million in equity. "Due to various market factors, interesting investment opportunities with attractive risk-return profiles are currently opening up in the commercial real estate market," informs the fund management. "The anti-cyclical orientation of the investment strategy is currently proving to be correct and gives us corresponding resilience."
In the first, abbreviated fiscal year, the IFC achieved an investment return of 5.75%. The fund's cash flow return for the past fiscal year was 4.05%, well above the target range. The distribution yield in the first fiscal year was 3.55% with a distribution ratio of 86%. (aw)
