First issue of Helvetia (CH) Swiss Property Fund: Subscription period from 6 to 27 May 2020

With Helvetia (CH) Swiss Property Fund, investors have the opportunity for the first time to participate in a real estate fund of Helvetia Asset Management AG. This Fund will invest directly in attractive real estate assets in Switzerland, mainly in large and mid-sized towns and cities and their conurbations. The portfolio will for the most part be invested in residential properties, supplemented by mixed-use and commercial properties.
 
Attractive cash flow return as investment objective
The portfolio will be built up primarily through portfolio transactions from the insurance portfolio of Helvetia Swiss Insurance Company Ltd, which will provide the Fund with stable rental income from day one. Selective purchases can also be made on the market. The investment objective of the Helvetia (CH) Swiss Property Fund is to ensure an attractive long-term cash flow return.
 
The initial issue is aimed exclusively at qualified investors and will have a volume of up to CHF 450 million. The relaunch enables entry at the net asset value (NAV). The Helvetia Group will also invest in the Fund. The issue proceeds will be used to acquire a broadly diversified real estate portfolio with 29 properties and a total value of around CHF 532 million from Helvetia Swiss Life Insurance Company Ltd, Basel.
 
Focus on cities or regional centres
The property portfolio to be acquired consists of 23 residential properties and six mixed-use residential and commercial properties in and within close proximity to major cities or in regional centres. Geographically, the properties are spread over the regions of Northwestern Switzerland (28% of market value), Zurich (19%), Lake Geneva (18%), Eastern Switzerland (10%), Central Switzerland (9%), Bern (7%), Western Switzerland (7%) and Southern Switzerland (3%). The portfolio has a high residential component of 83% of the target rental income and a very low vacancy rate of only 3.3% as of mid-April 2020.
 
The fund manager for the Helvetia (CH) Swiss Property Fund will be Helvetia Asset Management AG. Helvetia Insurance will continue to provide property management and fiduciary construction services. The custodian bank and distributor is Zürcher Kantonalbank. Following the launch of this Fund, Bank J. Sarasin Ltd will ensure OTC trading. A listing on SIX Swiss Exchange is planned in three to five years.
 
 
Fund information
 
The issue prospectus can be found on www.swissfunddata.ch or www.helvetia-am.ch.