The Swiss Life Investment Foundation is planning an opening of the "Real Estate Switzerland" and "Commercial Real Estate Switzerland" investment groups to the amount of some CHF 500 million. This represents an attractive opportunity for Swiss pension funds to invest in high-end Swiss real estate.
The Swiss Life Investment Foundation is planning to conduct an opening for around CHF 500 million with payment under subscription at the beginning of May 2021. The capital will be used to reduce the share of
debt capital, purchase additional properties, realise new construction projects and make ongoing investments in the portfolio. In order to finance these activities, the Swiss Life Investment Foundation is opening its "Real Estate Switzerland" and "Commercial Real Estate Switzerland" investment groups. The subscription period will run from 1 February to 31 March with payment under subscription on 5 May 2021. The opening is aimed at current and new investors who are deemed tax-exempt employee benefit institutions under Swiss law.
The two portfolios have continued to grow successfully through several acquisitions. Properties have been purchased in Zurich, Geneva, Schaffhausen and Aarau as well as attractive project developments in St. Gallen and Nyon. The two investment groups also invest in holdings in the Glatt shopping centre in Wallisellen. The Glatt centre is one of the largest and most popular shopping centres in Switzerland, as is also reflected by its having by far the highest surface area productivity of all Swiss shopping centres1 and a waiting list for prospective tenants.
Stephan Thaler, Managing Director of Swiss Life Investment Foundation, says: “We are happy to be able to offer existing and new investors another opportunity to invest in our two high-value real estate investment groups.”
The “Real Estate Switzerland” investment group focuses on residential real estate in Swiss cities or their suburbs, while “Commercial Real Estate Switzerland” invests in stable-income and stable-value commercial properties in central locations. Both investment groups have developed well in terms of earnings and value. The selective expansion of the portfolio with its clear focus on quality has paid off: since launch, the “Real Estate Switzerland” and “Commercial Real Estate Switzerland” investment groups have recorded an impressive performance of 5.63% and 5.10% respectively per year. At the same time, both investment groups enjoy above-average occupancy rates (97.1% and 97.7% as at the end of October 2020).
Swiss Life Asset Managers has been a signatory to the UN PRI since 2018. Environmental, social and governance (ESG) factors are systematically integrated into the investment and risk management processes at Swiss Life Asset Managers. In the real estate investment business, appropriate criteria are taken into account when purchasing as well as with construction projects and property management.
The "Real Estate Switzerland" and "Commercial Real Estate Switzerland" investment groups have participated in the annual GRESB (Global Real Estate Sustainability Benchmark) since 2018. In 2019 and 2020, both investment groups received a “Green Star” rating – an acknowledgement of good ESG integration in real estate investments.
1 Source: Shopping Center Marktreport Schweiz 2018