Successful capital increase for Helvetia (CH) Swiss Property Fund
Helvetia Asset Management has successfully completed the first capital increase for the Helvetia (CH) Swiss Property Fund in the amount of CHF 210 million. The capital increase was significantly oversubscribed. The issue proceeds from the capital increase will be used for the acquisition of ten properties with a market value of CHF 298.2 million.
29.03.2022 | Media release
The capital increase carried out for the Helvetia (CH) Swiss Property Fund between 8 and 28 March 2022 was significantly oversubscribed, having met with strong interest among investors. The issue of the new units took place on a best-effort basis as part of a rights offering in Switzerland. There was no subscription rights trading during the subscription period. The subscription rate was high, at 94%.
With a subscription ratio of nine to four (nine subscription rights entitling the investor to acquire four new units), 2,000,000 units were subscribed during the subscription period for existing and new investors, for a net issue price per unit of CHF 105. Payment of the new units will take place on 31 March 2022, with 6,500,000 units outstanding as of this date.
The capital increase produced proceeds of CHF 210 million. These proceeds will be used by Helvetia Swiss Life Insurance Company Ltd to acquire a real estate portfolio with a market value of CHF 298.2 million and offering a broad level of geographical diversification and a high proportion of residential properties. Additional borrowings of approximately CHF 100 million will be used to finance the acquisitions for the portfolio. Thus, at 1 April 2022, the Helvetia (CH) Swiss Property Fund will have 39 properties with a market value of approximately CHF 846 million (basis: independent appraisers as at 30 September 2021 for the existing portfolio and 1 December 2021 for the extended portfolio).
With the fund, Helvetia is developing a new business model in line with its helvetia 20.25 strategy and is offering its customers innovative asset management services. The fund management company intends to further expand the Helvetia (CH) Swiss Property Fund’s real estate portfolio. The idea is that the main part of the portfolio will be invested in residential properties and will be supplemented by mixed-use and commercial properties. The portfolio is to be built up primarily through further portfolio transactions from the holdings of Helvetia Insurance. In addition, the intention is to open up the Helvetia (CH) Swiss Property Fund to non-qualified investors as well over the next one to three years, with a listing being sought on SIX Swiss Exchange.
Fund information
With a subscription ratio of nine to four (nine subscription rights entitling the investor to acquire four new units), 2,000,000 units were subscribed during the subscription period for existing and new investors, for a net issue price per unit of CHF 105. Payment of the new units will take place on 31 March 2022, with 6,500,000 units outstanding as of this date.
The capital increase produced proceeds of CHF 210 million. These proceeds will be used by Helvetia Swiss Life Insurance Company Ltd to acquire a real estate portfolio with a market value of CHF 298.2 million and offering a broad level of geographical diversification and a high proportion of residential properties. Additional borrowings of approximately CHF 100 million will be used to finance the acquisitions for the portfolio. Thus, at 1 April 2022, the Helvetia (CH) Swiss Property Fund will have 39 properties with a market value of approximately CHF 846 million (basis: independent appraisers as at 30 September 2021 for the existing portfolio and 1 December 2021 for the extended portfolio).
With the fund, Helvetia is developing a new business model in line with its helvetia 20.25 strategy and is offering its customers innovative asset management services. The fund management company intends to further expand the Helvetia (CH) Swiss Property Fund’s real estate portfolio. The idea is that the main part of the portfolio will be invested in residential properties and will be supplemented by mixed-use and commercial properties. The portfolio is to be built up primarily through further portfolio transactions from the holdings of Helvetia Insurance. In addition, the intention is to open up the Helvetia (CH) Swiss Property Fund to non-qualified investors as well over the next one to three years, with a listing being sought on SIX Swiss Exchange.
Fund information
| Name | Helvetia (CH) Swiss Property Fund |
| Security / ISIN | Security: 51383832 / ISIN: CH0513838323 |
| Legal form | Contractual real estate fund under Swiss law |
| Fund domicile | Switzerland |
| Investor group | Limited to qualified investors pursuant to Art. 10 para. 3 CISA and Art. 10 para. 3ter CISA |
| Income use | distributed |
| Launch date | 3 June 2020 |
| Fund manager | Helvetia Asset Management Ltd, Basel |
| Portfolio management | Helvetia Asset Management Ltd, Basel |
| Custodian bank | Zürcher Kantonalbank, Zurich |
| Over-the-counter trading | Bank J. Safra Sarasin AG, Zurich |
| Audit firm | KPMG AG, Zurich |
| Valuation expert | Wüest Partner AG, Zurich |
Contact information
Analysts
Philipp Schüpbach
Head of Investor Relations
Helvetia Group
Phone: +41 58 280 57 79
investor.relations@helvetia.ch
Philipp Schüpbach
Head of Investor Relations
Helvetia Group
Phone: +41 58 280 57 79
investor.relations@helvetia.ch
Media
Jonas Grossniklaus
Head of Media Relations
Helvetia Group
Phone: +41 58 280 50 33
media.relations@helvetia.ch
Jonas Grossniklaus
Head of Media Relations
Helvetia Group
Phone: +41 58 280 50 33
media.relations@helvetia.ch