Zurich AST launches CHF 400 million issue

Zurich Invest Ltd is planning a capital increase of CHF 400 million for the Zurich Investment Foundation's "ZAST Real Estate Residential Switzerland" investment group. The additional capital will be used to acquire seven properties "with high building quality and attractive development potential, all in prime locations", the investment foundation announced. Five properties are located in the city of Zurich and one property each in Geneva and Lausanne. According to the information provided, the portfolio has a gross initial yield of 3.2 % and additional rental income potential of around 13 %. "The purchase of the acquisition portfolio reduces CO₂ emissions in the overall portfolio due to lower greenhouse gas emissions," writes Zurich Invest. And Marek Dobias, Portfolio Manager of the investment group, adds: "A portfolio of this quality in terms of location and condition is unique on the market".

The subscription period began on September 2 and runs until October 10.