The Helvetica Swiss Commercial Real Estate Fund expands its portfolio and continues to grow
The two properties are located in attractive locations in central and eastern Switzerland. The gross yield of the properties is almost 6%. The high-quality properties offers an attractive mix of tenants and usage within the retail and storage sector. On a leasable area of more than 20,000 square meters, around CHF 3.2 million rent per year is currently being generated. The newly purchased properties have an occupancy rate of around 95%. The weighted lease term is just below 6 years.
One of the properties is located in Arbon (TG) and presents itself as a typical shopping center serving the neighborhood and the surrounding region. The main tenant is a nationwide retailer, who is represented in the center with various concepts and wants to commit to the location long term. In the immediate vicinity, the entire city center of Arbon is being redeveloped, creating housing for more than a thousand people. The train station, the bus station and the lake are within walking distance of the property. The customers have parking available in a modern underground car park.
«Robust economic growth and the weaker franc are strengthening domestic demand. For many years, the Swiss shopping tourists were the growth driver of the retail trade in southern Germany. The wind turned last year. I therefore consider the timing for the selective entry into the retail sector as good,» says Frederic Königsegg, CIO, Head Investment Management.
The other property is located in Tuggen (SZ). There, a modern storage property was acquired, which is easily accessible from the motorway and leased for ten years to a nationwide logistics company.
The growth strategy of the HSC real estate fund will be continued. To capture attractive investment opportunities, the fund manager plans further capital increases in the future. The focus is on the planned listing in 2019 and the further portfolio expansion. In view of this, the fund was approved as a mutual fund by FINMA in the first quarter of 2018 and is now open to all investors.
«We always think long term and continue to look for attractive properties with stable cash flow for the HSC fund. Now we focus on the listing of the HSC funds mid-2019 and our proven hands-on asset managent approach to unlock hidden potential», says Hans R. Holdener, CEO und Managing Partner.
| Key Facts | ||
|---|---|---|
| Place | Tuggen | Arbon |
| Canton | Schwyz | Thurgau |
| Number of tenants | 1 | 19 |
| Usage | Storage | Retail |
| Construction year | 1995 | 1993 |
| Rental space m2 | 12’575 | 10’397 |
| Parking | 41 | 221 |
| WAULT | 10 years | 4.2 years |
| Occupancy rate | 100% | 94.6% |
| Market value | CHF 14.5 Million | CHF 40 Million |
| Gross Rent p.a. | CHF 0.73 Million | CHF 2.6 Million |
For more information
| Hans R. Holdener CEO and Managing Partner Phone + 41 43 544 70 80 E-Mail hrh@HelveticaProperty.com |
About Helvetica Property Investors AG
Helvetica Property Investors is an independent partner-owned and managed real estate fund management company regulated by the Swiss Financial Market Supervisory Authority FINMA. Helvetica Property Investors offers the full spectrum of real estate investments, including investment strategies, investment property selection, deal structuring, acquisitions, financing, portfolio management and sales. The firm offers both direct and indirect real estate investments in Switzerland on behalf of its clients. Helvetica Property Investors acts as fund and asset manager for the Helvetica Swiss Commercial real estate fund.
About Helvetica Swiss Commercial Real Estate Fund
The Helvetica Swiss Commercial real estate fund («HSC») and is an open contractual real estate investment fund under Swiss law open to all investors. The fund is suited for long-term value investors interested in a stable and consistent cash-flow. The fund invests in commercial properties with value appreciation potential across the most dynamic economic regions in Switzerland. The focus is on potentially undervalued properties with an attractive cash-flow yield. The fund manager pursues an active hands-on management approach to unlock and realize hidden potential in the properties by means of revitalization, renovations, vacancy reductions and lease extensions. The long-term goal is to build a broadly diversified portfolio by region, type of use, object size and tenant mix.