Swissinvest Fund: Net income slightly lower due to financing costs
The performance of the Swissinvest Real Estate Fund was encouraging in the first half of the financial year at 7.2%. However, net income decreased by 2.4% to CHF 11.1 million.
The reason for the lower net income at Swissinvest Real Estate Fund was, among other things, higher borrowing costs. Following the interest rate steps taken by the Swiss central bank, the interest expense for short-term fixed loans rose from 0.35% to just under 1.4% for Swissinvest Real Estate Fund. The fund management currently expects borrowing costs of CHF 2.6 million for the current financial year, which corresponds to a doubling compared with the previous year (CHF 1.3 million).
At CHF 21.6 million, rental income is at the level of the prior-year period. The rent default rate decreased from 4.21% to 3.66% compared to the financial statements 2021/22.
Acquisition in Zurich
In the first half of the year, a property in Zurich-Wiedikon was acquired. CHF 3.5 million was paid for the property at Ruhestrasse 3. It complements the properties Ruhestrasse 5 and 7 already in the portfolio with regard to a future development.
According to the fund management company, the building permit for the replacement building at Ruhestrasse 1, Manessestrasse 204 in Zurich is expected in the first half of 2023. Meanwhile, the new building at Obstgartenstrasse 12 and 14 in Kloten is progressing according to plan, according to Swissinvest. Occupation is still planned for fall 2023. The new construction project "Les Sauvabelines" in Lausanne is also reportedly on schedule. Occupation is scheduled for the beginning of 2024. (aw)
