Baloise Swiss Property Fund aims to raise 135 million with issue

The Baloise Swiss Property Fund intends to raise up to CHF 135 million in the course of a capital increase in order to acquire a portfolio of five properties from Baloise Life and Baloise Housing. A larger issue was originally planned.

The Baloise Swiss Property Fund is planning its next growth step (Image: Pixabay)

The fund management company Baloise Asset Management Ltd is carrying out a capital increase for the Baloise Swiss Property Fund from August 21 to August 29. In view of the current market environment, it has been decided to focus on a maximum of five properties. The volume for acquisition by means of asset transfer is to amount to a maximum of CHF 135 million. Originally, an issue of CHF 200 million was planned for the acquisition of eight properties (IB reported).

The purchase will further strengthen the fund's earning power and increase the quality of the overall portfolio. In addition, the debt ratio will be reduced to slightly over 19%. The real estate portfolio to be transferred is currently owned by Baloise Life Ltd and Baloise Residential Buildings Ltd. The Finma approval required for the transaction has been obtained.

The planned capital increase is based on the "best effort" approach. A total of 19 subscription rights entitle the holder to subscribe to four new shares, with a maximum of 1.253660 shares being issued. The issue price of CHF 107.78 is based on the net asset value as at March 31 and takes into account the valuations of the independent valuation experts as at this date as well as the expected changes in the relevant factors, including the issue commission of 0.25%.

The Baloise Swiss Property Fund aims for broad regional diversification and, in the medium to long term, sectoral diversification with a minimum of 50% residential and a maximum of 50% commercial properties. As at May 31, the fund owned 73 properties with a market volume of CHF 845.4 million. (aw)

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