Swiss Life AM launches Europe fund
On November 30, the new European real estate fund Swiss Life REF (CH) European Properties will be launched. The fund is expected to raise capital of at least EUR 250 million at launch, the equivalent of around CHF 289 million.
Swiss Life Asset Managers (Swiss Life AM) announced that the Swiss Life REF (CH) European Properties received marketing authorization from FINMA on September 29, 2017, and the launch is scheduled for November 30. The fund is aimed at qualified investors from Switzerland.
Investments will be made in core and core-plus locations in major European cities, regional centers and their agglomerations. The investment focus will be on the core European markets of Germany, France, Austria and Benelux, with the UK, Scandinavia and Southern Europe named as other key target regions. Swiss Life AG will make an investment at the launch in order to make a long-term commitment, Swiss Life AM further announces.
The fund management is targeting an annual distribution yield of around three percent, with a leverage ratio of 20 percent. The minimum subscription amount is 250,000 euros (plus issuing commission), which corresponds to 2,500 units.
From Swiss Life AM's perspective, European real estate investments offer an attractive return in the current low interest rate environment. They also have a low correlation with other asset classes and are therefore suitable for portfolio diversification, it adds. Additional advantages are constant income from rental income and potential inflation protection.
Swiss Life AM managed assets of more than CHF 54 billion as of the end of June. With real estate worth around CHF 74.3 billion (as of the end of June 2017), the company says it is the largest institutional real estate investor in Europe.
