Capital increase for Helvetia (CH) Swiss Property Fund: Subscription periods of 8 – 22 March 2022 (existing investors) and 8 – 28 March 2022 (new investors)

On 18 February 2022, Helvetia Asset Management AG announced that it was reviewing the acquisition of a real estate portfolio with a market value of CHF 298.2 million for the
Helvetia (CH) Swiss Property Fund. In order to finance the purchase of the properties in question, a capital increase of up to CHF 210 million is to be carried out. In addition, the intention is to raise debt capital of around CHF 100 million for the purchase of the real estate portfolio. The subscription period for existing investors will be 8 – 22 March 2022, while the subscription period for new investors will be 8 – 28 March 2022.
 
The issue of the new units will be executed on a best-effort basis as part of a public offer for subscription in Switzerland. A maximum of 2,000,000 new shares will be issued. This will increase the number of units in circulation from 4,500,000 to a maximum of 6,500,000. The issue amount may be reduced if not all the offered units are subscribed to. In this case, the fund manager reserves the right – following expiry of the subscription deadline – to take over any unsubscribed units itself or to place these in the market with all due care, together with the custodian bank or third parties.
 
The issue proceeds will be used by the fund manager to acquire a real estate portfolio of ten properties of Helvetia Swiss Life Insurance Company Ltd, Basel, for the fund by way of a cash purchase. On 4 February 2022, FINMA granted the fund manager an authorized exemption from the ban on transactions with related parties pursuant to Art. 63 paras. 2 and 4 CISA in conjunction with Art. 32a CISO for the transfer of the ten properties in question.
 
With the purchase of these properties, existing and new investors in the Helvetia (CH) Swiss Property Fund will have the opportunity to benefit from broader diversification. The real estate portfolio to be acquired comprises five residential properties and five mixed-use residential and commercial properties. The portfolio exhibits good property and locational quality together with high revenue and value stability, and has a high residential proportion of 79% of target rental income, as well as a below-average vacancy rate of 2.9% (as at 1 December 2021). Geographically, the properties are split between the regions of Zurich (33 percent of market value), eastern Switzerland (18 percent), Bern (17 percent), central Switzerland (16 percent), northwest Switzerland (12 percent), and western Switzerland (4 percent).
 
Key data on capital increase