BLKB launches real estate fund

BLKB Fund Management AG, a subsidiary of Basellandschaftliche Kantonalbank (BLKB), is launching a real estate fund with a geographical focus on Northwestern Switzerland. The BLKB (CH) Sustainable Property Fund is aimed at qualified investors and is expected to complete its first issue by the end of July. The subscription period is expected to run from June 24 to July 23 with a settlement date of July 30.

According to the information provided, the investment target is energy-efficient real estate, primarily in cities and conurbations in northwestern Switzerland, but also in the neighboring regions of Berne, central Switzerland and Zurich. The focus will be on residential properties, supplemented by mixed-use properties and commercial properties. According to its announcement, the fund management company intends to base its investment decisions and the operation of the properties on sustainability criteria.

Seven properties acquired

The initial issue is planned with a volume of up to CHF 160 million, with BLKB also intending to invest in the fund itself. A portfolio with a market value of around CHF 177 million has already been put together. "Seven of the eight properties in the portfolio were acquired by BLKB in the last two years specifically for the launch of the fund," writes the cantonal bank. One of the properties is an existing BLKB property.

According to the description, the portfolio consists of energy-efficient properties in good locations, with a high proportion of residential properties and a low vacancy rate. Currently, 80 % of the real estate assets are located in northwestern Switzerland. The properties are managed by Wincasa. Banque Cantonale Vaudoise acts as custodian bank and Zürcher Kantonalbank and BLKB as distributors. Listing on the Six Swiss Exchange is planned at a later date. (aw)