Opening of the “Commercial Real Estate Switzerland” investment group of up to approximately CHF 250 million. Second opening of the “Infrastructure Global (CHF hedged)” and “Infrastructure Global (EUR)” investment groups, which were successfully launched in May 2021 with a subscription volume of around CHF 200 million. Swiss employee benefits institutions will have an attractive opportunity to invest in high-quality Swiss commercial properties as well as access to a broadly diversified portfolio of infrastruc-ture investments in Europe and North America.
Commercial Real Estate Switzerland investment group
The Swiss Life Investment Foundation is planning to implement and issue units in the Commercial Real Estate Switzerland investment group of up to approximately CHF 250 million. The capital will be used to reduce the share of debt capital following a recent portfolio acquisition, to purchase additional properties and to make sustainable investments in the portfolio.
The subscription period runs from 1 February to 31 March 2022. The units will be issued on 4 May 2022.
In December 2021, the investment group acquired a mixed real estate portfolio with a market value of around CHF 350 million. The acquisition portfolio comprises 18 properties with very good location and property quality in major Swiss cities. 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 12% to 14%.
The Commercial Real Estate Switzerland investment group invests in commercial properties in central locations exhibiting stable earnings and valuations. The investment group has developed well in terms of earnings and value. The selective expansion of the portfolio with its clear focus on quality has paid off: Since its launch in 2011, the “Commercial Real Estate Switzerland” investment group has posted an impressive performance of 5.18% per year (as at 31 October 2021). In a challenging market environment, the advantageous distribution of uses and the focus on active lettings management are reflected in an above-average rental rate of 97% (as at 31 October 2021). Following the recent portfolio acquisition, the investment group held 110 properties with a market value of around CHF 2.2 billion as at the end of December 2021.
Infrastructure Global investment groups
The two investment groups “Infrastructure Global (CHF hedged)” and “Infrastructure Global (EUR)” were launched in May 2021 with a subscription volume of around CHF 200 million. The investment groups are designed as an "evergreen structure," i.e. without a fixed term. There is a particular focus on stable and regular distributions from the operating business. They are also approved for “investments in infrastructure” in accordance with BVV 2.
In order to further increase diversification and to continue with portfolio construction and expansion as
planned, a second subscription period is to take place between 26 January and 22 April 2022.
Stephan Thaler, Managing Director of Swiss Life Investment Foundation, says: “The performance of the Commercial Real Estate Switzerland investment group of 5.92% this year proved that a high-quality portfolio combined with active asset management generates above-average results, even in challenging times. Demand for infrastructure investments is also currently high among employee benefits institutions. With the planned second subscription period for our infrastructure investment groups, the Investment Foundation can offer investors attractive investment opportunities in long-term real values in the current low interest rate environment."
Since 2018 Swiss Life Asset Managers, as a mandated asset manager, has been a signatory to the UN Principles for Responsible Investment. 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 Commercial Real Estate Switzerland investment group has also participated in the annual GRESB (Global Real Estate Sustainability Benchmark) since 2018. In 2019 and 2020, the investment group received a “Green Star” rating – an acknowledgement of good ESG integration in real estate investments.