Swisscanto (CH) Real Estate Fund Responsible Swiss Commercial expands its portfolio with two properties
Press Release from 15. December 2020
The Swisscanto (CH) Real Estate Fund Responsible Swiss Commercial is expanding its portfolio with two attractive commercial properties in Root and Lachen.
Zurich, December 15, 2020 – In context with the recent capital increase, the Swisscanto (CH) Real Estate Fund Responsible Swiss Commercial ("Swiss Commercial", ISIN: CH0111959190) acquired two commercial properties in the tax-attractive communes of Root LU and Lachen SZ. The market value of the two properties is approx. CHF 62 million and the gross yield on the purchase price is approx. 4.3%. Ownership will take effect on January 4, 2021 for the property in Root and on December 14, 2020 for the property in Lachen. With the acquisitions, the total proceeds of the capital increase could be invested in a targeted and timely manner.
"With the two new acquisitions in attractive locations in Switzerland, we are sustainably strengthening the fund's cash flow stability and diversification", says Patrick Schmid, fund manager of the Swiss Commercial.
About the properties
The Oberfeld property in Root (www.oberfeld-root.ch) consists of two commercially used new buildings with commercial, office, retail and storage space in the Root D4 industrial zone. The property, which was newly built in 2019, is enjoying good tenant demand as indicated by the already high occupancy rate of over 70%. With a public agency and a state-owned company, around 50% of the current income is generated by tenants with strong credit ratings and close ties to the government. Other main tenants include two specialty stores. All space is leased on a long-term basis. Overall, there is an attractive WAULT of 13.85 years at the time of acquisition. For the Swiss Commercial, the property is immediately 100% income-producing due to a two-year rental guarantee.
The property at Alpenblickstrasse 25 in Lachen is a fully let office property. The building is located within walking distance of the railway station and is in excellent condition (built in 2016). The main tenant is a large Swiss insurance company with a share of rental income of around 50%. Other tenants include an asset manager and a medical practice.