Swiss Life Asset Managers expands its real estate product portfolio
Swiss Life Asset Managers is planning to launch two new real estate funds containing existing high-end real estate portfolios. This extended product range will enable Swiss Life Asset Managers to provide institutional investors with their first-ever opportunity to invest in a fund comprising German residential and commercial property. The launch of both funds is scheduled for the fourth quarter of 2015.
Swiss Life Asset Managers is continuing to develop its business with external clients and will extend its current product range by two new real estate funds this year. Through one real estate fund, Swiss Life Asset Managers will provide external clients with access for the first time to a diversified German real estate portfolio comprising residential and commercial property. The portfolio will be established and managed by Corpus Sireo, a subsidiary of Swiss Life Asset Managers. The opening is scheduled for 1 December 2015 with a targeted initial volume of up to CHF 400 million, rising to CHF 1 billion over the medium term. Stefan Mächler, Chief Investment Officer of the Swiss Life Group: "A local presence and sound knowledge of the market are key success factors when investing in real estate. That is what we can offer our investors through our subsidiary Corpus Sireo, a leading real estate service provider in Germany. The fund will enable investors to expand their real estate investments in an attractive market and diversify their portfolio."
New Swiss real estate fund and capital increase of the Luxembourg fund
In addition, Swiss Life Asset Managers is expanding its Swiss real estate investment offering: On 1 November 2015, a real estate fund will be set up for the first time under Swiss law with an existing real estate portfolio of some CHF 500 million. With the proceeds from the issue, the fund will acquire a broadly diversified portfolio of Swiss residential and commercial property from Swiss Life property holdings. As a result, Swiss Life Asset Managers will be able to provide investors with access to a high-end and established real estate portfolio. Swiss Life Asset Managers is also aiming for a capital increase in its existing real estate fund under Luxembourg law for November 2015 with Swiss commercial properties. The proceeds of the capital increase are to reduce the level of external financing and to build up the portfolio.
Stefan Mächler on the expansion of the offering: "In the current sustained environment of record low interest rates, our new fund offers investors the opportunity to invest in established, actively managed real estate portfolios with attractive earnings prospects. Investors can benefit from Swiss Life's long experience in the real estate business going back over 100 years."
Expansion of business with external customers and strong position in the real estate business
Swiss Life Asset Managers has successfully expanded its business with external customers in recent years. Assets under management in this area have more than tripled in the past five years and came to just under CHF 34 billion at the end of 2014. Together with insurance mandates (CHF 149.3 billion), total assets under management at Swiss Life Asset Managers stood at CHF 183.0 billion at the end of 2014. Of this amount, CHF 32.5 billion is invested in real estate. In addition, Swiss Life Asset Managers has real estate under administration of CHF 31.5 billion through its subsidiaries Livit and Corpus Sireo. Total real estate under management and administration at the end of 2014 thus came to CHF 64 billion.
The real estate funds outlined are exclusively for qualified investors. Comprehensive information on the real estate funds in question will be available from the relevant financial report following the launch of the funds and the documents which form the legal basis for any investment and are available free of charge by e-mail or in print from the fund management company: Swiss Life Funds AG, Via Bagutti 5, P.O. Box 4642, 6904 Lugano, or from the representative in Switzerland for foreign funds: Swiss Life Asset Management Ltd, General-Guisan-Quai 40, 8002 Zurich, www.swissfunddata.ch and www.swisslife-am.com. The payment office is: UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich. The place of jurisdiction for all units of foreign funds distributed in Switzerland shall be the location where the representative is registered.