Swiss Life Asset Management AG / Key word(s): Capital Increase/Acquisition
21-Oct-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
21 October 2020
Swiss Life REF (CH) Swiss Properties: Information about the planned capital increase
The real estate fund Swiss Life REF (CH) Swiss Properties is planning a capital increase with a volume of around CHF 500 million at the beginning of December. The aim of the capital increase is to acquire a high-quality real estate portfolio.
The issue will take place on commission ("best-effort basis") as part of a public subscription offer in Switzerland. Two (2) subscription rights entitle the holder to purchase one (1) new unit. Official subscription rights trading will take place from 30 November to 9 December 2020 at SIX Swiss Exchange Ltd. In total, a maximum of 4 500 000 new units will be issued. Any non-subscribed units might not be issued, which would reduce the amount of the issue.
The issue price will be disclosed in the second half of November and is based on the net asset value as at 30 September 2020, minus the distribution for the 2019/20 financial year. It includes the purchase of current income and an issuing commission of 2%. The subscription period is planned for 30 November to 11 December 2020. Payment will take place as at 17 December 2020.
Solid earnings and value development
The real estate fund Swiss Life REF (CH) Swiss Properties was launched on 2 November 2015 and successfully listed on the SIX Exchange in June 2019. The earnings and value trend of the properties as well as the expansion of the portfolio have led to the successful development of the fund (annual performance since launch: 8.12%). Its investment focus is on residential real estate in Swiss cities and their surrounding areas. The fund also invests in commercial properties at central locations. The portfolio had 88 properties with a market value of around CHF 1 270 million as at the end of March 2020.
The acquisition of a high-value property portfolio worth some CHF 500 million is being analysed with a view to continuing the successful strategy of qualitative growth. The portfolio is currently owned by Swiss Life Ltd. Swiss Life Asset Management Ltd has received the requisite authorisation from FINMA for the planned acquisition. Investors will benefit from the broader diversification achieved through expansion of the portfolio.
Purchase of a high-quality real estate portfolio
The new portfolio of 46 properties features a very high location and property quality and generates around 85% of rental income from residential units producing a steady return (over 1 100 apartments). More than three quarters of the properties are located in major cities and their surrounding areas or in medium-sized towns. With 23 properties, the focus is on dynamic large Swiss cities (Zurich 11, Geneva 5, Lausanne 4 and Basel 3 properties). Following the acquisition, the fund will have 134 properties with more than 3 200 apartments. Investors will thus continue to participate in the development of first-class Swiss real estate investments in the future.
Swiss Life Asset Managers has been a signatory to UN PRI since 2018. Environmental, social and governance factors (ESG) are systematically integrated into the investment and risk management processes at Swiss Life Asset Managers. In the real estate investment business, appropriate criteria are taken into account both in the purchase as well as in construction projects and property management.
The Swiss Life REF (CH) Swiss Properties real estate fund has been participating in the annual GRESB (Global Real Estate Sustainability Benchmark) since 2018. In 2019, the fund received a "Green Star" rating - an acknowledgement of good ESG integration in real estate investments.
Further information on the fund is available at the following link.
Swiss Life REF (CH) Swiss Properties
Fund ISIN / Swiss security no.:
CH0293784861 / 29378486
Contractual real estate fund
Circle of investors:
Non-qualified and qualified investors
Type of issue:
The issue will take place on commission ("best-effort basis") as part of a public subscription offer in Switzerland.
Around CHF 500 million
Appropriation of issue proceeds:
Purchase of a real estate portfolio owned by Swiss Life Ltd
30 November 2020 to 11 December 2020, 12:00 (CET)
Subscription ratio/new units issued:
Two (2) subscription rights entitle investors to acquire one (1) new unit | maximum of 4 500 000 units
ISIN/security reference rights:
CH0575733834 / 57573383
The issuing commission for the new units is 2.0% for the fund management company, custodian bank and/or distributor.
Subscription rights trading:
30 November 2020 to 9 December 2020 at SIX Swiss Exchange Ltd
Payment under subscription:
17 Dec. 2020
Fund management and administrator:
Swiss Life Asset Management Ltd.
Swiss Life Asset Management Ltd
UBS Switzerland AG, Zurich
Bank J. Safra Sarasin AG, Zurich
Phone +41 43 284 77 77
Phone +41 43 284 52 76
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Swiss Life Asset Managers
Swiss Life Asset Managers has more than 160 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. That's how we lay the groundwork for our clients to make solid, long-term plans - in self-determination and with financial confidence. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg
and the UK.
As at 30 June 2020 assets under management for third-party clients amount to CHF 82.9 billion. Together with insurance mandates for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at CHF 260.0 billion. Swiss Life Asset Managers is a leading real estate manager in Europe1. Of the assets totaling CHF 256.0 billion, CHF 71.4 billion is invested in real estate. In addition, Swiss Life Asset Managers has real estate under administration of CHF 28.3 billion through its subsidiaries Livit and Corpus Sireo. Total real estate under management and administration at the end of June 2020 thus came to CHF 99.7 billion.
Swiss Life Asset Managers employs more than 2200 people in Europe.
1 INREV Fund Manager Survey 2020 (AuM as of 31.12.2019)
This document has been produced with the greatest of care and to the best of our knowledge and belief. However, we do not accept any liability for losses resulting from the use of this information. This publication is not intended as a solicitation or recommendation to buy or sell investment instruments, but only serves to provide information. The source of all data and diagrams (unless stated otherwise) is Swiss Life Asset Management Ltd.
Comprehensive information on the fund can be found in the documents forming the legal basis for any investment. These may be ordered free of charge in electronic or printed form from the fund management company, Swiss Life Asset Management Ltd, General-Guisan-Quai 40, 8002 Zurich.
End of ad hoc announcement