Swiss Life Asset Managers acquires a first-class office property in Lyon for its Swiss Life REF (CH) European Properties real estate fund. Moreover, a further capital increase is planned for the middle of the year.
Three years after its launch, the real estate fund Swiss Life REF (CH) European Properties achieved total fund assets of just under EUR 590 million with a further purchase in Lyon at the end of 2020. As a result, the diversification of the fund in terms of location and tenants increased again, thus further strengthening its quality strategy.
As of the key date, the portfolio consisted of 16 core properties in nine countries. The fund is also well diversified by type of use.
Last November, the fully let "Le Solaris" office building was acquired in Lyon – France's second-largest business centre. The property comprises some 7130m2 of office space spread over seven well-lit upper floors and 134 parking spaces in the two basement floors. The units are currently let to 15 companies from various sectors with an average WAULT lease term of 3.8 years.
The fund's successful growth will continue with a planned capital increase in the summer of 2021. The fund already has an attractive deals pipeline in Germany, including the completion of a residential development project in Oldenburg.
Advantages of European real estate investments
The real estate fund Swiss Life REF (CH) European Properties was launched on 30 November 2017. Its portfolio composition and performance have since developed positively. The portfolio comprises sixteen properties in Germany, France, Spain, Luxembourg, Belgium, the UK, Ireland, Finland and the Netherlands. The fund invests in office, retail and residential real estate that holds its value as well as mixed-use properties in European metropolitan regions. It focuses on central locations in large cities and regional centres and their suburbs.
Investments in European real estate generate attractive returns in the current sustained low interest rate environment. They also have a low correlation to other asset classes. Swiss investors can use European real estate investments to significantly diversify their portfolios.
Swiss Life Asset Managers has been a signatory to 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 asset management business, corresponding criteria are applied both during acquisition and for construction projects and property management.