Swiss Life: First issue of «Commercial Switzerland» oversubscribed
The largest capital increase of a Swiss real estate fund so far this year is for the purchase of a commercial portfolio of Swiss Life with a value of CHF 640 million.
Swiss Life Asset Managers has completed the initial issue of the «Swiss Life REF (CH) ESG Diversified Commercial Switzerland» real estate fund. The fund, which will be listed directly on April 1, will receive CHF 500 million.
The issue, which ran from March 9 to 20, was reportedly met with great interest from institutional and private investors. It is reported that the subscriptions received exceeded the available issue volume. A proportional allocation was therefore made. «With the first issue, we have decided to raise the largest amount of capital of any real estate fund in Switzerland so far this year,» says Portfolio Manager Ibadete Mehmedi. The fund has been listed since its launch and focuses on commercial real estate in Switzerland.
The proceeds from the issue form the equity base for building up the initial portfolio worth around CHF 640 million. Already committed debt tranches will finance the remaining amount of the total investment volume. The portfolio being acquired by Swiss Life comprises office, retail and mixed-use properties in Zurich, Geneva, Basel, Lucerne, St. Gallen and Lugano, among others.
