Zurich, 8 September 2023 – The Helvetica Swiss Commercial Fund has successfully sold its first property as part of its strategically planned portfolio optimisation and has had further leasing successes.
Successful property sale
The Helvetica Swiss Commercial Fund (HSC Fund) successfully sold one of its portfolio properties at the end of August 2023. The sale was completed at above the property’s market value, which is a sign that the HSC Fund’s real estate portfolio is fairly valued. The current market price of the listed Swiss real estate fund, which has been paying out high dividends for a number of years, therefore does not fully reflect the intrinsic value and its growth prospects, which currently represent an attractive opportunity for investors.
With this sale, Helvetica is consistently pursuing the strategy announced in its half-year report of reducing the fund's leverage by selling an initial package of properties and moving towards a target range of 25-28 percent. Negotiations for a further sale are at an advanced stage and are expected to be concluded in the near future.
“We are consistently pursuing our strategic plan to further optimise our portfolio, to secure an even stronger market position with lower leverage and to create long-term value and stable dividends for our investors,” says Dominik Fischer, Head Investment Management at Helvetica.
First-rate tenant relationships sustainably strengthening the revenue base
A second strategic priority in the currently challenging market environment is the consistent realisation of the properties’ potential. In addition to examining utilisation reserves, potential is unlocked by increasing the occupancy rate through new leases and contract extensions. At present, the fund’s management can announce leasing success highlights at three locations.
Firstly, the early extension of the lease with the company Ochsner Sport AG at Bernstrasse 35 in Lyssach (Bern) for an additional five years. The property offers a generous amount of flexible retail space across two full floors. This extension confirms the attractiveness of the retail centre in Lyssach with its appealing tenant mix.
In the changing office market environment, Helvetica succeeded in retaining the French-Swiss Chamber of Commerce (CCIF) as a tenant for an additional five years in the attractive, prestigious building located on Route du Jura in Fribourg. In addition, 850 m2 of the “Atrium” office and commercial property in Baden-Dättwil was let on a long-term basis to new tenants from the healthcare industry and the arts and culture sector.
The high occupancy rate of over 95 percent is testament to the efforts we have made to establish first-rate tenant relationships, but it also shows that commercial properties are still very much in demand across our investment strategy," says Natasha Gamper, Head Asset Management Commercial.
About Helvetica
Helvetica Property Investors AG is a leading real estate fund management and asset management company. We offer our clients sustainable value through active, long-term ownership of secure and stable real estate investments. With a fully integrated real estate investment platform, we offer standardized investment products as well as customized investment programs. We are proud of our long-standing reputation for excellent customer service and our commitment to responsible business practices. Our firm is li-censed and regulated by the Swiss Financial Market Supervisory Authority FINMA.
About Helvetica Swiss Commercial Fund
The HSC Fund is a Swiss real estate fund listed on the SIX Swiss Exchange and open to all investors. The HSC Fund invests in commercial and industrial properties in the most important economic areas of Switzerland. The fund's portfolio is geared towards long-term value preservation and features high location and property quality as well as broad diversification. The investment objec-tive is primarily the long-term preservation of substance and the distribution of appropriate income. The HSC Fund is authorized by the Swiss Financial Market Supervisory Authority, FINMA.
Listing SIX Swiss Exchange; ticker symbol HSC; security 33 550 793; ISIN CH0335507932
Disclaimer
This media release does not constitute a prospectus within the meaning of Art. 35 et seq. of the Federal Act on Financial Services or Art. 27 et seq. of the Listing Rules of SIX Swiss Exchange Ltd, nor does it constitute a Key Investor Information Document (KIID) within the meaning of the Swiss Collec-tive Investment Schemes Act or 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 commis-sions and costs charged on the subscription and redemption of units. The documents that are solely relevant for an investment decision, the prospec-tus 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 hand-ed over to US persons within the meaning of the US Securities Act or US tax regulations, nor may it be distributed in the USA.
