Swiss Central City: Fund portfolio grows by 28 percent
The Swiss Central City Real Estate Fund acquired nine properties and one condominium unit in 2022, increasing the portfolio to CHF 614.8 million.
The acquisitions were made at central locations in Basel, St. Gallen, Lucerne and Geneva. Target rental income increased by CHF 3.2 million or 20% to CHF 19.5 million in the course of the year. With two projects acquired in St. Gallen (Felsenstrasse 84 and Unterer Graben 9), there is already a secured rental income increase potential of around CHF 0.4 million, which will be realized by 2024. According to a statement by the fund management company, Nova Property Fund Management AG, the rent default rate meanwhile fell from 6.7 to 4.7%.
Valuation result increases in 2022
Net income reached CHF 9.5 million (PY: 9.7 million). The valuation of the portfolio resulted in an unrealized gain of CHF 10.3 million (2021: 7.8 million), which was mainly due to revaluation gains on various newly acquired properties, a renewed reduction of the discount rates by the independent valuation expert as well as further investments in the ongoing project in Zurich Luisenstrasse 40. The debt financing ratio increased from 11.1 to 29.4%.
The total amount distributed for 2022 remains unchanged at CHF 9.5 million or CHF 2.50 per unit. (aw)
