The “Swiss Life REF (CH) European Properties” real estate fund is planning a capital increase of EUR 70 million maximum with a subscription period from 29 June to 17 July 2020. The issue price has been set at EUR 105.00.
Existing and new investors1 can participate in the capital increase. The scheduled issue will take place on a best-effort basis. Six (6) subscription rights entitle the holder to purchase one (1) new unit. The issue price is EUR 105.00. In total, a maximum of 666 666 new units will be issued. The actual number will be defined by the fund management company following the expiry of the subscription period. The subscription period runs from 29 June to 17 July 2020 and payment under subscription is planned for 27 July 2020.
In addition to two properties in Paris and Dublin, the first two residential properties in Germany (Offenbach and Dortmund) and the first commercial property in the Netherlands (The Hague) were acquired in the last financial year.
Further real estate purchases are already under review. A substantial part of the issue proceeds will immediately be used to repay short-term debt capital.
Advantages of European real estate investments
The real estate fund Swiss Life REF (CH) European Properties was launched on 30 November 2017. Its portfolio composition and performance have since developed positively. At the end of May 2020, the portfolio contained fifteen properties in Germany, France, Spain, Luxembourg, Belgium, the UK, Ireland, Finland and the Netherlands with a market value of over EUR 500 million. The fund invests in office, retail and residential real estate that holds its value as well as mixed-use properties in European metropolitan regions. It focuses on central locations in large cities and regional centres and their suburbs.
Investments in European real estate generate attractive returns in the current sustained low interest rate environment. They also have a low correlation to other asset classes. Swiss investors can use European real estate investments to significantly diversify their portfolios. Additional advantages include stable returns through rental income and potential inflation protection.
1 The group of investors (existing and new investors) is restricted to qualified investors as per the Swiss Federal Act on Collective Capital Investments.
Details of capital increase
| Name | Swiss Life REF (CH) European Properties |
| ISIN | Swiss security number |
Unit: CH038 541 554 9 | 38 541 554 Subscription right: CH054 842 045 1 | 54 842 045 |
| Legal form of the real estate fund |
Contractual investment fund governed by Swiss law of the type “Realestate fund” for qualified investors. |
| Previous number of units |
4'000’000 |
| Newly issued units |
Maximum 666 666 units |
| Issue volume |
Up to EUR 70 m |
| Subscription ratio |
Six (6) subscription rights entitle the holder to purchase one (1) new unit |
| Issue price |
EUR 105,00 |
| Subscription period |
Monday, 29 June 2020 to Friday, 17 July 2020 |
| Payment under subscription |
Monday, 27 July 2020 |
| Issuing commission |
The issuing commission for the new units is 0.9% for the fund management company, custodian bank and/or secondary distributor. |
| Nature of issue |
The issue will take place on a best-effort basis. |
| Appropriation of issue proceeds |
The issue proceeds will be used for the acquisition of properties and the repayment of short-term debt financing. |
| Portfolio manager |
Swiss Life Asset Management Ltd, Zurich |
| Fund management company |
Swiss Life Asset Management Ltd, Zurich |
| Custodian bank |
Credit Suisse (Switzerland) AG |
| Issuing bank |
Credit Suisse AG |
Contact
Media Relations
Tel.: +41 43 284 77 77
E-Mail: media.relations@swisslife.ch
Investor Relations
Tel.: +41 43 284 52 76
E-Mail: investor.relations@swisslife.ch