Swiss Life REF (CH) ESG Swiss Properties Acquires Portfolio Ahead of Capital Increase

Swiss Life REF (CH) ESG Swiss Properties has announced the acquisition of a residential property portfolio from Swiss Life AG valued at around CHF 700 million. Approved by FINMA, the portfolio includes 47 properties located throughout Switzerland, with significant market values in Zurich, Pfäffikon, Schaffhausen, Liestal, Allschwil, Fribourg, Montreux, and Lausanne.

The acquisition will result in a gross initial yield of approximately 4.6%, compared to the existing portfolio's 3.9%. This growth is expected to reduce the fund's management fee from 0.54% to 0.51% per annum, enhancing profitability and cost-effectiveness.

The capital increase aims to raise around CHF 610 million, with the subscription period set from July 2 to July 12, 2024. The funds will be used for additional acquisitions and renovating existing properties. Subscription rights trading will occur on the SIX Swiss Exchange from July 2 to July 10, 2024.

Further details are available in the latest client presentation on the company's website.