The HSC Fund significantly increases and diversifies its portfolio

Commercial area Arbon - Canton Thurgau
On 13 July 2020, HSC Fund signed a purchase agreement for a mixed-use commercial property in Thurgau in Arbon/TG. The property will be taken over retroactively as of 1 July 2020.

The property is situated in an extremely well developed and economically intensive location not far from the motorway. The site has a rentable area of almost 22,500 square meters and generates income of approximately CHF 1.4 million per year with various lease agreements. The acquired property measures around 35,000 square meters.

Versatile, attractive and fully let commercial area with extremely attractive rental rates
The property in Arbon was built in various years of construction and is in an age-appropriate and for a rental very good condition. The current average rent is low, at CHF 65 per square meter per year. The actual return on invested capital is calculated at around 5.5%. The average lease term of over 5 years is well above the average of the current HSC Fund portfolio. The occupancy rate is around 99%.

Versoix – Canton Geneva
The purchase of a modern, mixed-use commercial property in Versoix/GE, with a market value of CHF 31.14 million, already notarised on 30 April 2020, was subject to a statutory right of first refusal by FTI (Foundation pour les terrains Industriels, see the press release dated 4 May 2020). FTI did not exercise this pre-emptive right. As planned, the transfer of benefits and burdens in favour of the HSC Fund took place retroactively as of 1 May 2020.

"When acquiring the commercial property in Versoix, the focus was on the high security of future cash flows. In Arbon, we are acquiring a commercial site that is easy to rent and still has the potential to increase rental income in the mid-term" says Frederic Königsegg, Chief Investment Officer.

With the acquisitions in Arbon and Versoix, HSC Fund increases the total volume of its portfolio by approximately CHF 57 million to almost CHF 705 million. In addition to the improved diversification, investors benefit from an increase in the remaining term of fixed leases (WAULT) to around 4.7 years. The HSC Fund’s ability to distribute dividends remains extremely stable even after these two acquisitions.

Media contact
Michael Müller                                                                 Frederic Königsegg
Chief Executive Officer                                                     Chief Investment Officer
T +41 43 544 70 80                                                         +41 43 544 70 83
mm@Helvetica.com                                                          fk@Helvetica.com