Helvetica Swiss Living plans 150 million capital increase
A capital increase of up to CHF 150 million is planned for the Helvetica Swiss Living Fund. The fund management company also has its sights set on a listing on the stock exchange.
A listing of the fund on the SIX Swiss Exchange is targeted by the end of 2024. Capital raising is planned for the second quarter of 2023, with the funds raised earmarked for further expansion and optimization of the portfolio. "The fund management considers this an extremely attractive window of opportunity to enter the undervalued Swiss residential market," Helvetica wrote in a statement.
Fund focuses on low rent segment
The HSL Fund invests in economic centers with a rapidly growing population and good public transport connections. Priority acquisition criteria are properties with low rent quantiles, ideally of around 30 %, and with gross yields above 4 %. "Record population growth, inflation and strong housing demand will inevitably lead to rising rents," it says. It says it is well positioned for this with low rent levels. Natural tenant fluctuation of around 15 % per year would allow existing rents to be gradually adjusted to market rents and inflation.
The fund's real estate portfolio currently comprises 1,850 apartments with a value of approximately CHF 818 million.
