Real Estate

There are basically two ways to invest in real estate: 

• Direct ownership: the investor acquires physical property (e.g. investment property). This form is capital intensive and offers full control, but requires extensive expertise as well as responsibility for maintenance, distribution, regulatory requirements and increasing sustainability requirements.
  
  
• Indirect real estate investment (collective investment): the capital of several investors is bundled (equity pooling) and invested in professionally managed real estate portfolios.  A broadly diversified investment is possible for even smaller amounts. The main advantages are the diversification effect (by region, type of use) and the outsourcing of operating expenses to specialised real estate professionals.  

Swiss Life Asset Managers sees itself as an active value creator throughout the entire life cycle of a property. Our core competencies include: 

• Portfolio & asset management: strategic orientation and ongoing optimisation of portfolios. 
• Transactions: professional market access for purchases and sales. 
• Development & construction: development of new construction projects and value-enhancing revitalisations. 
• Sustainability (ESG): active management of the decarbonisation pathway to ensure long-term intrinsic value. 

How are returns generated on real estate investments?  

The total return consists of two key components:

• Current income (cash flow): stable rental income as a steady source of income. 
• Performance: capital growth through market developments or targeted value-adding measures (e.g. refurbishments). The return depends on the interest rate trend, the rental rate, the sustainable condition of the properties and the development of the net asset value (NAV). 

What is a non-listed real estate fund?  

Non-listed real estate funds invest directly in real estate; these units are not traded on an exchange. Subscriptions and redemptions take place directly via the fund company on specified dates. This structure is particularly suitable for long-term institutional investors seeking stable distributions and low price fluctuations. 

What is a listed real estate fund?  

Listed real estate funds are tradable on the Swiss stock exchange (SIX Swiss Exchange). The unit price is formed daily and may deviate from the NAV. They offer high liquidity and are also accessible to a broader investor public. 

What is a premium?  

A premium is the percentage surcharge with which a listed real estate fund is traded on the stock exchange above its NAV (intrinsic value). A premium of e.g. 20% means that investors are prepared to pay CHF 120 for a unit with a net asset value of CHF 100. The premium reflects the high demand and investor confidence in the quality of the portfolio. 

What is an investment foundation?  

An investment foundation is a Swiss legal structure that is exclusively accessible to tax-exempt domestic employee benefits institutions (especially pension funds). It offers access to collective real estate investments with an attractive tax structure. The investment foundation is monitored by the Occupational Pension Supervisory Commission (OPSC).

 What is an investment group?  

An investment group is a subdivision of an investment foundation with a specific investment strategy (e.g. Swiss residential, Swiss commercial). Investors subscribe to units in individual investment groups and can thus invest strategically in certain real estate segments. 

Our offering is tailored to the needs of different investor profiles: 

• Listed real estate funds: maximum transparency and liquidity through daily trading for all investor classes via stock exchange trading. 
• Unlisted funds: focus on qualified investors with the aim of lower price volatility. 
• Investment foundation investment groups: access to collective real estate investments with an attractive tax structure for tax-exempt domestic employee benefits institutions (mainly pension funds)