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Swiss Life REF (CH) Swiss Properties: Close of the financial year 2017/2018 and the coming capital increase

14.11.2018

  • Realised gains increased by 1.9% year-on-year to CHF 14.2 million.
  • The distribution has remained constant since the fund launch and amounted to CHF 2.60 for the past financial year.
  • The capital increase will take place in November/December 2018. The issue price has been set at CHF 108.00.

The real estate fund portfolio was expanded by two properties in the previous financial year and comprised 48 properties with a market value of around CHF 674 million at the end of the financial year. The properties once again appreciated in value, with their market value increasing by 2.4% or CHF 15.3 million. The chief value driver was the continuing strong investor demand for high-value properties in good locations, especially for residential use. A portion of the appreciation can be ascribed to investments.

Thanks to the focus on good locations combined with an active lettings management, the vacancy rate was reduced to 2.6%. Rentals received (gross earnings posted) rose by 2.2% to CHF 29.3 million. Realised gains as at 30 September 2018 increased by 1.9%, from CHF 13.9 million to CHF 14.2 million. Investors receive a distribution of CHF 14.0 million in total, which equates to CHF 2.60 per share. Distribution has thus remained stable and sustainable since the fund was launched. The yield on distribution (based on the off-exchange price as at 30 September 2018) is 2.17%.

Capital increase announced
The real estate fund is planning a capital increase with a volume of around CHF 380 million. The issue will take place on commission (“best-effort basis”) as part of a subscription offer in Switzerland. Three (3) subscription rights entitle investors to acquire two (2) new units. The issue price of CHF 108.00 is based on the net asset value as at 30 September 2018 less the distribution for the 2017/18 financial year. It includes the purchase of current income and an issuing commission of 2.0%. Any non-subscribed units will not be issued, which may reduce the amount of the issue. In total, a maximum of 3 600 000 new units will be issued. The subscription period is planned for 21 November to 3 December 2018 with payment as of 10 December 2018.

Purchase of a high-quality property portfolio
The new capital will finance the acquisition of a portfolio with 38 properties and a volume of around CHF 500 million. The new portfolio is currently owned by Swiss Life Ltd. It has a focus on high-quality residential properties with excellent locations in economically strong regions.

Following the acquisition of the portfolio, the fund will have a total of 86 properties with more than 1800 apartments. As a result, investors will benefit from broader diversification in terms of properties and tenants. A listing on the SIX Swiss Exchange is planned before the end of 2019.

Information about the capital increase

Name

Swiss Life REF (CH) Swiss Properties

ISIN | Swiss security number                       

CH0293784861 | 29378486 (fund unit)
CH0435240319 | 43524031 (subscription right)

Legal form of the real estate fund

Contractual investment fund governed by Swiss law of the “real estate fund” type for qualified investors

Previous number of units

5 400 000

Subscription ratio | Newly issued units

Three (3) subscription rights entitle investors to acquire two (2) new units | Maximum of 3 600 000 units

Issue volume

Around CHF 380 million

Subscription period

Wednesday, 21 November 2018 to Monday, 3 December 2018

Payment under subscription

Monday, 10 December 2018

Issue price

CHF 108.00

Issuing commission

The issuing commission for the new units is 2.0 % in favour of the fund management.

Nature of issue

The issue will take place on a best-effort basis.

Appropriation of issue proceeds

The issue proceeds will be used to acquire a real estate portfolio worth around CHF 500 million.

Listing

The fund is to be listed on the SIX Swiss Exchange, most likely by the end of 2019.

Portfolio manager

Swiss Life Asset Management Ltd, Zurich

Fund management company

Swiss Life Asset Management Ltd, Zurich

Custodian bank

UBS Switzerland AG, Zurich

Disclaimer:
The real estate fund outlined is exclusively for qualified investors located in Switzerland. Comprehensive information on the real estate fund mentioned can be taken from the relevant financial report as well as from the documents forming the legal basis for any investment. They may be ordered free of charge in electronic or printed form from the fund management company Swiss Life Asset Management Ltd, General-Guisan-Quai 40, P.O. Box 2831, 8022 Zurich, or at www.swissfunddata.ch and at www.swisslife-am.com. The payment office is UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich. The place of jurisdiction is at the fund management company's registered office.
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