Zurich's real estate fund is now in the top 3
The real estate fund "ZIF Immobilien Direkt Schweiz" is now among the top 3 of the largest unlisted Swiss real estate funds. The issuer Zurich Invest AG attributes this success to its high proportion of first-class properties in the economic regions of Zurich and Lake Geneva.
In just two years, Zurich Invest AG has become an important provider of real estate investments, the company writes in a press release . With the capital increase in September and a future total volume of CHF 1.3 billion, your fund “ZIF Immobilien Direkt Schweiz” will become one of the largest unlisted Swiss real estate funds. Zurich Invest Ltd launched the fund in October 2018. The first capital increase took place last year.
The real estate fund's rapid growth is possible "because Zurich , as a global insurer, is one of the most important property owners in Switzerland and has been able to build up a portfolio of attractive buildings over a long period of time," the press release said. The changed range of life insurance companies also accounts for the 80 percent share of first-class real estate in the Zurich fund. Since they now contain fewer guarantee products, less real estate is required to guarantee the obligations. "This is why Zurich has the opportunity to transfer properties in the most desirable locations to a fund."
As it is said, the second capital increase will run for around 340 million francs and will take place on October 21. The subscription period is from September 21st to October 2nd. The new tranche comprises a total of 20 properties. "In addition to their prime location, the buildings are characterized by the fact that we are pursuing the goal of operating them in a CO2-neutral manner in the future," said Martin Gubler, CEO of Zurich Invest AG. The first two tranches of the fund in 2018 and 2019 were heavily oversubscribed. He is "extremely satisfied" with his performance.