The real estate fund Swiss Life REF (CH) Swiss Properties acquired a residential property in Arbon and a commercial property in Sion in October 2017. Following the acquisition, the fund portfolio now consists of 48 properties with a market value totalling CHF 659 million.
The residential property "Brühlstrasse 87 a-d" in Arbon was built in 1961 and fully renovated in 2014. It has 21 efficiently apportioned apartments and the site is located in a large green area. The property thus caters to a stable demand segment in the middle price range. It is also in very good condition with excellent functionality. The property's annual target rental income is CHF 345 000.
The retail property "Avenue de France 12" in Sion is in an optimal location between the station and town centre. The area has just under 35 000 inhabitants and is the economic and administrative centre of Canton Valais. The building, constructed in 1985 and partially renovated in 2010, has excellent visibility. It is used by businesses offering key services to the surrounding area, located in a busy pedestrian zone and has excellent public and private transport connections. The property is fully let out with an average remaining maturity of just under five years (WAULT). The target rental income is CHF 600 000 per annum.
Including both these acquisitions, the total market value of the real estate portfolio amounts to CHF 659 million.
The Swiss Life REF (CH) Swiss Properties real estate fund was successfully launched on 2 November 2015. The fund invests in residential properties and in sought-after commercial properties preferably located in Swiss cities or their suburbs. It also offers broad diversification in terms of the type of use, tenant mix, location, size, age and condition of the properties.