First issue for new timber construction fund launched

The new sub-fund Sustainable Real Estate Investments SICAV - Sustainable Real Estate Wood intends to invest at least 51% in developed land and buildings under construction in timber construction (including timber hybrid construction). Investments will also be made in building land and undeveloped plots without a legally valid building permit with the aim of constructing new buildings in timber construction, according to the factsheet for the initial issue. Sustainable Real Estate Wood will be the first fund in Switzerland to focus on new buildings made of wood and/or Minergie-P buildings, according to Sustainable Real Estate.

The aim is to achieve geographical diversification with a focus on agglomerations that offer good socio-demographic and economic conditions. In addition, the sub-fund should ensure diversification in terms of the type of property - residential, commercial, mixed use - with at least 51% of the sub-fund's rental income coming from residential properties, the factsheet continues. The fund will hold the properties directly.

The fund is aimed at qualified investors and over-the-counter trading will be ensured by the Zurich-based private bank Lienhardt & Partner. An IPO is possible at the earliest five years after the launch. Sustainable Real Estate's target is a distribution of 2.5% from rental income; distributions are also possible during the build-up phase.

The subscription period for Sustainable Real Estate Wood runs from November 8 to December 4, with a subscription volume of CHF 50 to 100 million. The leverage ratio will be a maximum of 33.3%. (ah)