Cronos launches new fund
The subscription period for a fund offering an alternative to listed vehicles begins in September.
Cronos Finance SA is launching a new, unlisted real estate fund next September. With the Cronos Immo Fund 2 (CIF2), the fund company aims to "offer an alternative to listed real estate funds", according to the announcement. With an issue price based on net asset value and no premium, the product promises low volatility. The focus is on the residential real estate sector in French-speaking Switzerland. The initial portfolio is expected to have a value of CHF 50 to 75 million.
Commenting on the background to the decision, Cronos writes that the Swiss index for listed real estate funds (SWIIT) has just reached a new all-time high of over 570 points. The average positive difference between net asset value and market value is now +35 %, well above the historical average of +26 % over the last ten years. "Our analysis suggests that this upward trend should continue as the return of negative interest rates in Switzerland becomes increasingly likely," says Pascal Roux, CEO of Cronos Finance SA. His company also points to favorable conditions for the execution of transactions by means of contributions in kind. (aw)
