Zurich, 24 November 2021
Ad hoc announcement pursuant to Art. 53 LR
Swiss Life REF (CH) Swiss Properties: closing of 2020/2021 financial year and pending capital increase
Strong portfolio growth combined with a simultaneous increase in net income of 27.4% to CHF 30.9 million results in a stable distribution of CHF 2.60 per unit. Announced capital increase to take place in November/December 2021. Issue price set at CHF 113.50.
The Swiss Life REF (CH) Swiss Properties real estate fund holds a real estate portfolio diversified throughout Switzerland. The total portfolio of 135 existing properties and one property under construction has a market value of around CHF 2.0 billion (as at 30 September 2021). The portfolio was expanded during the financial year with the acquisition of a high-quality property portfolio with 46 properties with a strong focus on residential. As well as the purchase of a residential and commercial property in Zurich-Höngg. At the same time, a residential building in Bulle and a small building with mixed-use in Basel were sold during the past business year. The market value of the properties held in the portfolio over the entire reporting period increased by CHF 41.3 million or 2.2% (net, after deduction of investments). The main value driver was the high demand for apartment buildings and properties in central locations.
Despite a challenging market environment, the rent default rate was maintained at a low 3.61% due to the focus on good locations, a favourable diversity of uses and the focus on active lettings management. Net income as at 30 September 2021 increased by 27.4% from CHF 24.3 million to CHF 30.9 million. Investors will receive a total of CHF 35.1 million, or CHF 2.60 per unit, by way of distribution. Part of this is the result of the successful sales of the properties in Bulle and Basel. The distribution per unit thus remains stable.
Capital increase announced
The Swiss Life REF (CH) Swiss Properties real estate fund is carrying out a capital increase in November/December 2021 with a volume of around CHF 300 million. This will be used to acquire a high-quality real estate portfolio worth in the region of CHF 340 million.
The issue will take place on a commission ("best-effort") basis as part of a public subscription offer in Switzerland. Five (5) subscription rights entitle the holder to purchase one (1) new unit. Official trading in the subscription rights will take place from 29 November to 8 December 2021 at SIX Swiss Exchange Ltd. In total, a maximum of 2 700 000 new units will be issued. Any unsubscribed units may not be issued, thereby reducing the amount of the issue.
The issue price of CHF 113.50 is based on the net asset value as at 30 September 2021 less the distribution for the 2020/21 financial year. It includes the purchase of current income and an issuing commission of 2%. The subscription period will run from 29 November until 10 December 2021, with 16 December 2021 as the payment under subscription date.
The Swiss Life REF (CH) Swiss Properties real estate fund has been participating in the annual GRESB (Global Real Estate Sustainability Benchmark) since 2018. In 2021, the fund received a "Green Star" rating of three out of five possible stars - an acknowledgement of good ESG integration in real estate investments.
Further information about the real estate fund (issue prospectus, annual report as at 30 September 2021 etc.) can be found at the following link.
||Swiss Life REF (CH) Swiss Properties
|ISIN / security no. of fund
||CH0293784861 / 29378486
||Contractual real estate fund
||Non-qualified and qualified investors
|Nature of issue
||The issue will take place on a commission ("best-effort") basis as part of a public subscription offer in Switzerland.
||Approx. CHF 300 million
|Appropriation of issue proceeds
||Purchase of a real estate portfolio owned by Swiss Life Ltd.
||29 November 2021 to 10 December 2021, 12:00 (CET).
|Subscription ratio/new units issued
||Five (5) subscription rights entitle investors to acquire one (1) new unit / maximum of 2 700 000 units.
|ISIN/security subscription rights
||CH1143003460 / 114300346
||The issuing commission for the new units is 2% for the fund management company, custodian bank and/or distributor.
|Trading of subscription rights
||29 November 2021 to 8 December 2021 at SIX Swiss Exchange Ltd.
|Payment under subscription
||16 December 2021
|Fund management and administrator
||Swiss Life Asset Management Ltd., Zurich
||Swiss Life Asset Management Ltd., Zurich
||UBS Switzerland AG, Zurich
||Bank J. Safra Sarasin AG, Zurich
Phone +41 43 284 77 77
Phone +41 43 284 52 76
/ / /
Swiss Life Asset Managers
Swiss Life Asset Managers has more than 160 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg and the UK.
As at 30 June 2021 assets under management for third-party clients amount to CHF 98.9 billion. Together with insurance mandates for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at CHF 274.4 billion. Swiss Life Asset Managers is a leading real estate manager in Europe1. Of the assets totalling CHF 274.4 billion, CHF 81.8 billion is invested in real estate. In addition, Swiss Life Asset Managers, in cooperation with Livit, manages real estate totalling CHF 28.8 billion in value. Total real estate under management and administration at the end of June 2021 thus came to CHF 110.6 billion.
Swiss Life Asset Managers employs more than 2400 people in Europe.
Swiss Life enables people to lead a self-determined life and look to the future with confidence. Swiss Life Asset Managers pursues the same goal: We think long-term and act responsibly. We use our knowledge and experience to develop future-oriented investment solutions. This is how we support our customers in achieving their long-term investment objectives, which in turn also take account of their client's needs so they can plan their financial future in a self-determined manner.
1 INREV Fund Manager Survey 2021 (AuM as of 31.12.2020)
This announcement has been produced with the greatest possible care and to the best of our knowledge and belief. However, we do not accept any liability for losses resulting from the use of this information. This publication is not intended as a solicitation or recommendation to buy or sell investment instruments, but only serves to provide information. Prior to subscribing or acquiring fund units on the stock exchange, investors should obtain and carefully read the detailed information on the fund contained in the regulatory documentation (prospectus with integrated fund contract, simplified prospectus and the latest annual and semi-annual reports) that serve as the sole legal basis for the purchase of fund units. These 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, 8002 Zurich.
Past performance is no indication of current or future performance. The performance data do not include commissions and costs incurred when issuing and redeeming fund units. Both Swiss Life Ltd. and the other members of the Swiss Life Group are entitled to units in this fund and to purchase and/or sell them. Swiss Life Asset Managers funds may not be offered for sale or sold in the US or on behalf of US citizens or US persons residing in the US. "Swiss Life Asset Managers" is the brand name for the asset management activities of the Swiss Life Group. More information is available at www.swisslife-am.com. Source: Swiss Life Asset Managers (unless stated otherwise). All rights reserved. Contact: firstname.lastname@example.org.