Swiss Life REF (CH) Swiss Properties: Capital increase planned and property purchased in Basel
The fund management company Swiss Life Funds AG is planning a capital increase of approximately CHF 100 million for Swiss Life REF (CH) Swiss Properties for the beginning of 2017.
The real estate fund Swiss Life REF (CH) Swiss Properties was successfully launched on 2 November 2015. The earnings and price development of the properties and the expansion of the portfolio have resulted in a strong performance by the fund. The fund invests mainly in residential properties and select commercial buildings, preferably in Swiss cities or their agglomerations. The fund also offers broad diversification in terms of the type of use, tenant mix, location, size, age and condition of the properties.
Since its launch, the fund has acquired a residential property in Emmen and two mixed-use properties in two excellent locations at Buchs (SG) und Neuchâtel. As of 1 December 2016, the fund will also acquire an inner-city commercial property on the prominent Freie Strasse in downtown Basel. The property has an excellent quality profile and is on a long-term lease. Factoring in this acquisition, the total market value of the real estate portfolio amounts to over CHF 620 million.
The fund is currently reviewing other potential acquisitions. The fund management is planning to finance future investments by issuing new units with a subscription ratio of 5 to 1 at the start of 2017, which will mean some CHF 100 million in new money for the fund. Current investors have subscription rights to the capital increase so they will be protected from the dilution effect. The specific conditions of the planned capital increase will be announced in January 2017.