Helvetica: HSL fund reduces debt financing through sales
Since the beginning of the year, the Swiss Living Fund has reportedly sold 13 properties for CHF 184 million and significantly reduced its credit burden.
The Helvetica Swiss Living Fund (HSL) has sold thirteen properties worth CHF 184 million since the start of the year, according to a statement. "These strategic sales strengthen the portfolio and reduce the leverage ratio below the regulatory maximum at an early stage - from 43 % at the end of 2023 to 31.5 %," writes the fund management company. An important milestone has thus been reached.
Properties were sold that were not the focus of the investment strategy due to their performance or location. The gross yield rose to over 4 % as a result of the sales and the net yield increased by 25 basis points to around 3.4 %. At the same time, the fund's vacancy rate fell to below 4 %. "The sales sharpen the profile of the HSL Fund and strengthen the stability and earning power of the portfolio," it continues.
Further sales should be completed by the end of September 2024. According to Helvetica, the debt financing ratio will then settle within the planned target corridor of 25 to 28 %.
"Strong foundation for growth"
As already communicated in April 2024, the management fee was reduced from 0.70 to 0.45 % retroactively to the beginning of the year. "In combination with the other measures, this positions the fund as an attractive investment vehicle compared to its competitors," Helvetica communicates, and with a net asset value of around CHF 102 per unit sees a "strong foundation to continue to grow and increase in value".
The investment strategy focuses on suburban residential locations in growth regions with a lower rent segment. Through cost-efficient renovations, including energy optimization, the fund aims to "help relieve the strained housing market and meet the needs of the future". (aw)
