ZAST: Issue for residential investment group raises 570 million
Due to «impressive» demand, Zurich Invest Ltd was able to increase the issue volume for «Real Estate Residential Switzerland» by CHF 170 million at short notice.
Zurich Invest Ltd has carried out a capital increase of CHF 570 million for the Zurich Investment Foundation's «Real Estate Residential Switzerland» investment group. «The strong interest led to an oversubscription», writes AST in a press release. Existing investors increased their commitment and new pension funds expanded the circle of investors. Zurich Invest had initially planned a capital increase of CHF 400 million. AST used this amount to purchase a portfolio of seven properties in prime locations in Zurich, Lausanne and Geneva. «The interest shown by investors was impressive - the targeted volume was fully placed within a very short time,» writes ZAST.
Eight further properties acquired
Additional properties in the Zurich, Lake Geneva, Eastern Switzerland and Ticino regions with predominantly residential use were acquired for a further CHF 170 million. The corresponding increase in the issue was realized immediately thanks to the strong oversubscription.
Following completion of the capital increase, the investment group's total assets amount to around CHF 4.8 billion. According to the information provided, the 15 newly acquired properties are characterized by high occupancy rates and stable income streams. The gross initial yield is around 3.53 %.
