Capital increase for Swiss Life fund Commercial Properties Switzerland

A total of up to 77,143 new shares in Commercial Properties Switzerland are to be issued, corresponding to issue proceeds of around CHF 90 million. The proceeds from the issue are intended to reduce the debt ratio so that future property purchases can be financed again by borrowing, according to the fund management. The funds will also be used for the renewal and development of the portfolio.

As part of the capital increase, seven existing shares entitle the holder to subscribe to one new share. The shares can be purchased on the basis of the net asset value. The issue will be carried out on a commission basis (best-effort basis) as part of a rights offering; there will be no rights trading. The fund management reserves the right to place any unsubscribed units on the market to new investors.

Swiss Life REF (LUX) Commercial Properties Switzerland was launched on November 1, 2012 with a total volume of CHF 600 million. As of March 31, 2017 (the date of the portfolio revaluation by Wüest Partner), the real estate portfolio includes 30 properties with a market value of around 832 million. In the last financial year, the total return was 6.2 percent. The fund is aimed at institutional investors, investing in a diversified Swiss commercial real estate portfolio in central locations.

In view of the upcoming capital increase, the commercial properties at Gaiserwaldstrasse 4 in St. Gallen and Industriestrasse 32 in Dietlikon were recently acquired. Both properties are fully leased under long-term rental agreements.