Helvetica plans capital increase for the Helvetica Swiss Living Fund

Press release April 6, 2023

Press release (PDF)

Zurich, April 6, 2023 – Helvetica is planning a capital increase for the Helvetica Swiss Living Fund to take benefit from current market opportunities.

As part of the planned listing on the SIX Swiss Exchange, the fund management of Helvetica Swiss Living Fund (HSL Fund) plans a capital increase of up to CHF 150 million in the second quarter of 2023. The capital raising will be used for the further expansion and optimization of the portfolio along the planned growth strategy.

The capital increase will enable investors to participate in the residential fund with one of the highest distribution yields of all Swiss residential funds. The fund management considers this an extremely attractive window of opportunity to enter the undervalued Swiss residential market.

Investments are made in the most promising regions
The HSL Fund invests in easily accessible regional economic centers with a fast-growing population and good public transport connections. According to the latest study "Transaction Market Switzerland, Outlook 2023" by JLL, 46 percent of the investors questioned expect the best risk/return ratio in the residential sector precisely in these regions. The goal is to invest mostly at attractive yields that improve the portfolio ratios. Acquisition criteria are primarily properties with low rent ratios, ideally around 30 percent, and gross yields of over 4 percent. Helvetica's large network ensures access to the best buying opportunities.

Market rents will rise sharply
Record high population growth, inflation and strong demand for housing will inevitably lead to rising rents. Accordingly, the Helvetica Swiss Living Fund is ideally positioned for an increase in market rents thanks to its low rent levels. Natural tenant fluctuation of around 15 percent per year means that existing rents can be successively adjusted to market rents as well as inflation. With a rent quantile of currently 39 percent, the rental level is in the low price segment and thus ensures a very high distribution capacity over the long term. Swiss residential real estate is thus very crisis-resistant and offers stable cash flow and long-term value appreciation.

One of the highest-dividend residential funds
Helvetica has repeatedly proven that it can generate sustainable growth even in a difficult market environment. The Helvetica Swiss Living Fund grew by 63 percent in the 2022 financial year and, with a real estate portfolio of over CHF 818 million and 1,850 first-class apartments, is one of the largest unlisted residential funds in Switzerland. For the 2022 financial year, a dividend distribution of CHF 3.45 per unit will be paid, which represents an increase of 1.5 percent compared to the previous year.

Outlook
For the 2023 financial year, the fund management aims to increase the dividend distribution by a further 5 centimes compared to the previous year and is targeting CHF 3.50 per fund unit.

The exact terms of the planned capital increase will be announced before the start of the subscription period. The Helvetica Swiss Living Fund is aimed at qualified investors and is traded over the counter by Bank J. Safra Sarasin.

A listing of the fund on the SIX Swiss Exchange is targeted by the end of 2024.​​​​​​​

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About Helvetica
Helvetica Property Investors AG is a leading real estate fund management company and asset management firm. We deliver sustainable value to our clients through active, long-term ownership of safe and stable real estate investments. With a fully integrated real estate investment platform, we are able to provide both standardized investment products and customized investment plans. We are proud of our longstanding reputation for outstanding client service and dedication to responsible ownership. Our firm is approved and regulated by the Swiss Financial Market Supervisory Authority FINMA.

About Helvetica Swiss Living Fund
The HSL Fund is a Swiss real estate fund open exclusively to qualified investors. The 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 newer properties with stable and sustainable revenues. The investment objective is primarily to preserve the fund's long-term value and to distribute reasonable profits. The fund share units can be traded over-the-counter. The HSL Fund is approved 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 does it constitute a Key Investor Information Document (KIID) within the meaning of the Swiss Collective Investment Schemes Act or a Key Information Document. It does not constitute an offer or a recommendation to subscribe for or redeem fund shares, 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 shares. 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.