Helvetia (CH) Swiss Property Fund: planned listing on SIX Swiss Exchange on 25 June 2024 and pleasing half-year results

SIX Swiss Exchange has approved the application to list the Helvetia (CH) Swiss Property Fund on SIX Swiss Exchange on 25 June 2024, subject to the pending amendment to the fund agreement opening the fund to non-qualified investors. Until the listing, only qualified investors may invest in the fund in accordance with Art. 10 (3 and 3ter) of the Swiss Collective Investment Schemes Act (CISA) in conjunction with Art. 4 (3–5) and Art. 5 (1) of the Swiss Financial Services Act (FinSA). Once listed, the fund will be open to all investors. As a result of the listing, they will benefit from increased liquidity of their fund shares, and the fund is also expected to be included in the SXI Real Estate Broad and SXI Real Estate Funds Broad indices. Bank J. Safra Sarasin and Zürcher Kantonalbank are supporting the planned listing as joint lead managers.
 
Improved earning power accompanies planned listing
The Helvetia (CH) Swiss Property Fund recorded a successful first half of the 2023/2024 financial year as at 31 March 2024, recording net income of CHF 11.49 million. The rental situation continues to be very comfortable, and the portfolio's already low rent default rate fell once again from 2.48% as at 30 September 2023 to 2.29% as at 31 March 2024 – a below-average level compared with the competition. This is attributable to sustained demand for housing, the attractive location of the properties and active rental management.
 
The fund generated realized gains of CHF 0.37 million from the sale of a small property that no longer fit with the strategy; this property had a market value of CHF 2.65 million as at 30 September 2023. As at 31 March 2024, realized gains and the associated distributable income totalled CHF 11.86 million, which equates to an encouraging CHF 1.46 per unit. Distributable income for the previous financial year as a whole amounted to CHF 2.78 per unit.
 
This positive operating result was offset by a moderate, negative change in the value of the property portfolio. Unrealized capital losses amounted to CHF 3.52 million. This decline is due to a slight increase in the discount rates applied by independent valuation experts. After deduction of liquidation taxes, the total income for the Helvetia (CH) Swiss Property Fund stands at CHF 7.56 million, representing a positive investment return of 0.94%.
 
 
 
Fund information
The Helvetia (CH) Swiss Property Fund was launched in 2020 and invests directly in high-quality real estate with a focus on large and medium-sized cities and their surrounding urban areas throughout Switzerland, with the aim of broad regional diversification. The majority of the portfolio (almost 80%) is invested in residential properties, supplemented by mixed-use and commercial properties. The portfolio strategy is focused on optimizing current income, realizing potential and implementing sustainability objectives. The fund holds 46 properties and is broadly diversified with regard to location, building age and tenant structure. The market value of the properties stood at CHF 1,072 million as at 31 March 2024.