Opening of the "Real Estate Switzerland ESG" investment group of up to CHF 350 million. Purchase of a residential portfolio in December 2022 comprising 33 properties with a residential component of 91% (December 2022). Opportunity to invest in a net asset value (NAV) based real estate in-vestment group that has been very well established on the market since 2009 with a market value of over CHF 4 billion. Attractive opportunity for Swiss employee benefits institutions to in vest in prime-quality Swiss real estate.
Real Estate Switzerland ESG investment group
The Swiss Life Investment Foundation is planning an opening to issue entitlements in the Real Estate. Switzerland ESG investment group of up to CHF 350 million. The capital will be used to reduce the borrowing ratio, purchase additional properties and make sustainable investments in the portfolio.
The subscription period will run from 1 February to 15 March 2023. The entitlements will be issued on 5 April 2023.
In December 2022, the investment group acquired a residential portfolio with a market value of around CHF 350 million. The acquisition portfolio consists of 33 residential properties with very good location and building quality in Swiss cities and their suburbs. The purchase increases portfolio diversification and earnings stability. Due to the high proportion of residential use in the acquired portfolio, real estate income from residential use can be increased from 67% to 69%.
The Real Estate Switzerland ESG investment group focuses on residential real estate in Swiss cities and their suburbs. The investment group has a history of stable and positive performance in terms of both income and value. The selective expansion of the portfolio with its clear focus on quality has paid off: since its launch in 2009, the Real Estate Switzerland ESG investment group has posted an impressive performance of 5.57% per year (as at 31 December 2022). In a challenging market environment, the advantageous diversity of uses and the focus on active lettings management are reflected in an above-average occupancy rate of 98% (as at 31 December 2022). Following the portfolio acquisition, the investment group held 269 properties with a market value of around CHF 4.2 billion as at the end of December 2022.
Stephan Thaler, Managing Director of the Swiss Life Investment Foundation, says: "We are pleased to be able to offer existing and new investors an opportunity to invest in a NAV-based and prime-quality real estate investment group."
Responsible investment
Since 2018, Swiss Life Asset Managers has been a signatory to the UN Principles for Responsible Investment (UN PRI). Environmental, social and governance (ESG) factors are systematically integrated into the investment and risk management processes at Swiss Life Asset Managers. In the investment business with real estate and infrastructure investments, appropriate criteria are taken into account in both acquisition and management.
The Real Estate Switzerland ESG investment group has also participated in the annual GRESB (Global Real Estate Sustainability Benchmark) since 2018. Since 2019, the investment group has been awarded the "Green Star" rating every year – an acknowledgement of good ESG integration in real estate investments.