Helvetica Swiss Living Fund lays the foundation for future growth and reduces its debt financing ratio ahead of schedule through targeted real estate sales

Press release, 20 August 2024


Press release (PDF)

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.

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Helvetica.com

Media contact

Urs Kunz
Chief Commercial Officer,
Member of the Executive Board
T +41 43 544 70 95
urs.kunz@helvetica.com

About Helvetica
Helvetica Property Investors AG, founded in 2006, is a leading real estate fund and asset management corporation regulated by FINMA. We offer institutional investors and private investors lasting value through active and long-term ownership of secure and stable real estate assets with solid returns. With our fully integrated real estate asset platform, we cover the entire value chain, develop customer-specific investment solutions, and provide standardized investment products: The listed HSC Fund for commercial property, the HSO Fund for special commercial property, and the HSL Fund for residential property invest in attractive locations across Switzerland with good transport connections to regional economic centers. Our commitment to a sustainable future takes into account ESG requirements along the entire real estate life and investment cycle, and is formally integrated at fund level. Helvetica.com

Helvetica Swiss Living Fund
The HSL Fund is a Swiss real estate fund open only to qualified investors. HSL Fund invests in residential real estate throughout Switzerland, primarily where regional and national economic centers are easily accessible. The investment focus of the fund is on older and as-new properties with stable and sustainable income. The investment objective is mainly to maintain the value of the properties over the long term and to distribute appropriate income. The fund units are tradable over the counter. The HSL Fund is authorized by the Swiss Financial Market Supervisory Authority FINMA. Ticker Symbol HSL; Valor 49 527 566; ISIN CH0495275668

Disclaimer
This media release does not constitute a prospectus within the meaning of Art. 35 et seq. of the Federal Act on Financial Services, nor a basic information sheet. It does not constitute an offer or a recommendation to subscribe for or redeem fund units but is intended solely for information purposes. This media release may contain forward-looking statements that are subject to uncertainties and risks and may change. Historical performance is no guarantee of current or future performance. The performance data do not take into account any commissions and costs charged on the subscription and redemption of units. The documents that are solely relevant for an investment decision, the prospectus with integrated fund contract as well as the current annual report can be obtained free of charge from the fund management company. This media release is not addressed to persons resident and/or domiciled outside Switzerland. In particular, this media release may not be made available or handed over to US persons within the meaning of the US Securities Act or US tax regulations, nor may it be distributed in the USA.
In case of doubt, the German version shall prevail.