Helvetica announces sales and paves the way for fund merger
With these transactions, Helvetica is laying important foundations for the planned IPO of the Opportunity Fund. One property in Pratteln was sold at a significant discount, but the good news from the company's perspective is that the timetable for the merger with the larger HSC fund is in place.
Helvetica completed two property sales in December that are significant in view of the planned merger of the two funds Swiss Commercial (HSC) and Swiss Opportunity (HSO). As the company announced today, both the "Rüti Center" in Pratteln - to an institutional investor - and the fund property in Buchs - to a private investor - were sold. The two sales will generate proceeds of around CHF 81 million, which will enable the debt ratio to be reduced to around CHF 17 %.
The two sales resulted in a total discount of CHF 18 million compared to the last market value, or -11 % compared to the values in the half-year report. According to the information provided, the discount stems entirely from the sale of the "Rüti Center" in Pratteln, while the property in Buchs was sold at its last market value. Furtbachstrasse 16/18 in Buchs was last recorded in the books with a market value of around CHF 27.5 million, while the five plots in Pratteln were valued at CHF 71.2 million. There had already been a significant devaluation at this time (IB reported). The property in Pratteln consists of five adjoining plots of land under building rights, with a diverse usage and tenant structure. The sale was complex: both regulatory and financial requirements had to be taken into account with regard to the planned stock market listing, as Helvetiva reports.
HSO distribution expected to remain at previous year's level
The important message from Helvetica's point of view, however, is that the sales have set decisive milestones on the way to the planned IPO of HSO and the subsequent planned merger with the HSC Fund. These two measures are to take place within the already communicated timeframe of mid-2025. HSO's portfolio still comprises eleven properties with a total market value of around CHF 198 million. In operational terms, the fund can look back on a profitable 2024: rental income is secured in the long term with a low vacancy rate (after sales) of 0.65 % and a WAULT of 4.5 years, according to Helvetia. Thanks to this income, the fund management company expects a distribution for 2024 at the previous year's level of CHF 5.50 per unit. (aw)
