Realstone Swiss Property: earnings up 15 percent
In its eighth financial year, the Realstone Swiss Property Fund generated income of CHF 40.7 million, 15.1 percent more than in the previous year.
As at March 31, 2016, fund assets consisting of 55 properties in 14 cantons totalled CHF 962.9 million, 30% more than a year earlier. The increase is mainly due to acquisitions, Together with the Realstone Development Funds, Realstone Swiss Property has purchased a 62,000 square meter site in Horgen Oberdorf from Credit Suisse.
At the same time, the fund invested in the rejuvenation of the real estate portfolio in the reporting year, on the one hand by renovating existing properties and on the other by realizing new projects, including the Ostermundigen project in Bern with 124 apartments.
"The rejuvenation policy of the fund's own real estate portfolio was introduced two years ago and is now clearly bearing fruit," says Esteban Garcia, President of Realstone Holding SA. "This is also evidenced by the increase in rental income and the rise in the market value of the properties." In the past financial year, the total of CHF 13.3 million invested in the renovation generated an increase in the general occupancy rate in the real estate park of 1.55 percent. The fund puts the value creation potential at 46 percent of the total market value of the real estate park.
In order to continue the Realstone Swiss Property Fund's value creation strategy, the fund is planning a capital increase of around CHF 100 million in the second half of 2016. (ah)
