Helvetica: Commercial fund sells and increases liquidity

The Helvetica Swiss Commercial Fund has reported that it sold properties worth a total of CHF 133 million in November. "With its focused and profitable portfolio, the fund is on track to maintain the distribution for 2024 at the previous year's level of CHF 5.35 per unit," Helvetica writes in a press release. The fund management company considers this amount to be "achievable in the long term". As a result of the sales, the leverage ratio of the HSC Fund will fall significantly below the target corridor of 25 to 28%. Thanks to the improved liquidity, the fund will be able to service the redemptions received at the end of 2023 in March 2025. In addition, the fund is now in a position to "immediately take advantage of strategic purchase opportunities again".

Of the five sales, three totaling CHF 83 million were completed directly. The two remaining sales of CHF 51 million would be completed by February 2025 at the latest due to an exercise period based on existing pre-emption rights in favor of third parties. However, the transaction security is given in any case. According to Helvetica, the properties for sale are a shopping center, two office properties and two industrial properties.

The mix of uses in the fund will change only insignificantly as a result of the sales. The transactions mainly involved properties in need of refurbishment, which will significantly reduce the capex requirement for the coming years by around CHF 30 million, according to the statement. However, the properties were sold at a loss on the book value: "In view of the market environment and the shortage of bank financing for commercial properties, this resulted in a price discount compared to the appraised value totaling around 5%," Helvetica writes in a statement. In return, however, the gross yield could be kept stable at 6.1 %, the Wault at 4.2 years and the vacancy rate on the reporting date at 4.9 %.

Fee reduction to 0.55%

Helvetica also announces that the administration fee will be reduced to 0.55 % as of January 1. This is a further reduction compared to the announcement in spring, when Helvetica announced a reduction in the fee to 0.60% had announced. (aw)