Helvetica Property Investors AG
Helvetica Swiss Living Fund lays the foundation for future growth and reduces its debt financing ratio ahead of schedule through targeted real estate sales
Helvetica Property
/ Key word(s): Funds/Real Estate
Press release, 20 August 2024 Zurich, August 20, 2024 – The Helvetica Swiss Living Fund (HSL Fund) has sold thirteen properties to the value of around CHF 184 million since the beginning of 2024. These strategic sales strengthen the portfolio and reduce the debt financing ratio to below the regulatory maximum well ahead of time – from 43 percent at the end of 2023 to 31.5 percent. This represents an important milestone for the fund. The management of Helvetica has undertaken targeted measures to strengthen the HSL Fund’s market positioning, to sharpen the portfolio and to position the fund solidly for future growth. Properties that were not in line with the investment strategy due to their performance or location were systematically sold. This portfolio optimization will increase the gross yield to over 4 percent and improve the net yield by 25 basis points to around 3.4 percent, while at the same time reducing the fund’s vacancy rate to under 4 percent. The sales sharpen the profile of the HSL Fund and strengthen the portfolio’s stability and earning power. Upon conclusion of all planned sales, which are expected to be completed by the end of September 2024, the debt financing ratio will settle in the target range of 25 to 28 percent. This will lay the foundation for strengthening the fund over the long term. As announced in April 2024, the management fee was significantly reduced from 0.70 percent to 0.45 percent with retroactive effect from the beginning of the year. In combination with the other measures, this positions the fund as an attractive investment vehicle compared to competitors. With a net asset value (NAV) of around CHF 102 per unit after the sales that have already taken place, the fund offers a strong foundation for further growth and value appreciation. The investment strategy is increasingly focused on suburban residential areas in growth regions. The focus is in particular on properties in the lower rental segment, which is in demand from a broad swathe of the population. The continuous immigration and internal migration into suburban areas is also increasing demand. The fund aims to help relieve the pressure on the tight housing market and meet future needs through cost-effective renovations, including energy optimization. With these measures, the HSL Fund is in a strong position and is ready for the next phase of growth. The fund remains true to its goal of achieving stable and attractive returns for its investors over the long term. Further information: The half-year report of the HSL Fund will be published together with those of the Helvetica Swiss Commercial Fund (HSC Fund) and the Helvetica Swiss Opportunity Fund (HSO Fund) on September 3, 2024. All press releases can be found under Media contact
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Language: | English |
Company: | Helvetica Property |
Brandschenkestrasse 47 | |
8002 Zürich | |
Switzerland | |
Phone: | +41 43 544 7080 |
E-mail: | office@helvetica.com |
Internet: | www.helvetica.com |
ISIN: | CH0335507932 |
Valor: | 33550793 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 1970939 |
End of News | EQS News Service |