Helvetia real estate fund shows good results

Basel, December 2021

The Helvetia (CH) Swiss Property Fund generated an investment return of 5.5 percent in the first regular financial year. Due to its high proportion of residential real estate, the fund remained largely unaffected by the pandemic. The loss of rent could be reduced to 2.5 percent.

The Helvetia (CH) Swiss Property Fund posted an overall profit of CHF 24.2 million in the first regular financial year, which ended on September 30, informs Helvetia Asset Management AG in a message . The overall success consisted of net income of CHF 12.8 million and an appreciation of the portfolio. The return on investment was 5.5 percent.

The fund, which is mainly made up of residential properties, was "largely spared the negative effects of the COVID-19 pandemic", explains the Helvetia Group's investment manager. The rent default rate was reduced to 2.5 percent in the course of the year. The report puts the rental income at CHF 22.2 million.

In the course of the financial year, the fund gained 18.9 percent in over-the-counter trading, the press release explains. This means that the SXI Real Estate Funds Broad TR, which is relevant for listed Swiss real estate funds, was exceeded with its performance of 15.3 percent. The market value of the properties rose by 2.3 percent or around 12.2 million francs year-on-year.

Helvetia Asset Management intends to further expand its real estate portfolio in the current financial year. To this end, a capital increase of around CHF 200 million is planned for the end of March. The fund should also be listed on the SIX Swiss Exchange in three years at the latest.

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