Swiss Life Investment Foundation is planning a substantial opening of the "Real Estate Switzerland" and "Commercial Real Estate Switzerland" investment groups on 2 December 2019, in the amount of up to CHF 650 million. This represents an attractive opportunity for Swiss pension funds to invest in high-end Swiss real estate.
Swiss Life Investment Foundation is planning to acquire a high-value property portfolio (worth some CHF 500 million) belonging to Swiss Life Ltd with the intention to continue its successful strategy of qualitative growth. The purchase of additional properties, the realisation of attractive construction projects and a reduction in the share of debt capital are also planned. The targeted portfolio and the project pipeline are distinguished by their prime location and property quality.
Many of the properties are located in major cities and their suburbs. In order to finance these activities, Swiss Life Investment Foundation is opening its “Real Estate Switzerland” and “Commercial Real Estate Switzerland” investment groups for new subscriptions on 2 December 2019.
Stephan Thaler, Managing Director of Swiss Life Investment Foundation, says: “We are pleased to be able to offer existing and new investors a one-time opportunity to invest in our two high-value real estate investment groups. This will be the first re-opening of the two investment groups since 2014.”
The “Real Estate Switzerland” investment group focuses on residential real estate in Swiss cities and their suburbs, while “Commercial Real Estate Switzerland” invests in high-income commercial properties in central locations. Both investment groups have a track record of gratifying earnings and performance. The selective expansion of the portfolio with a clear focus on quality has paid off: since their launch, the “Real Estate Switzerland” and “Commercial Real Estate Switzerland” investment groups have recorded an impressive performance of 5.68% and 5.04% respectively per year. At the same time, both investment groups enjoy above-average rental rates (96.6% and 96.3% as at the end of June 2019)