The first half of the 2021 financial year developed well for the Investment Foundation and its two investment groups “Swiss Residential Properties” and “Swiss Healthcare Properties”. The assets of the Investment Foundation increased to CHF 1.1 billion. More than 150 professional investors participate.
The investment assets of the “Swiss Residential Properties” investment group increased by 40 million Swiss francs to 752 million Swiss francs in the first half of the year. A commercial property with conversion potential was acquired in Bern-Bümpliz (BE) for nine million Swiss francs as of 1 May 2021. Various portfolio properties are being modernised with investments in construction projects in Geneva (Rue de Lyon and Rue de Neuchatel), Yverdon (VD), Grand-Lancy (GE), Vouvry (VS) and Spreitenbach (AG). Part of the growth in the period can be attributed to the mid-year valuation round. Among other things, the value of the property in Lausanne-Malley (VD), which will be the first of the four development projects in the portfolio to be realised from 2022/2023, developed positively.
The first lettings of the new residential projects “Residenza verde” in Lugano-Pazzallo (TI), “Oassis” in Crissier (VD) and “Citygate” in Basel (BS), which were completed last year, developed excellently with almost all units let – also due to these additions to the portfolio, the target rental income increased from CHF 13 to 15.3 million for the period. The temporarily higher rent default rate was reduced from 8.6 to 5.9 per cent due to the good development of the initial letting compared to the previous year. The average interest rate on debt financing was further reduced.
As of 30 June 2021, the portfolio consists of 59 existing properties, the ongoing new construction project in Kriens (LU) and one undeveloped property. The share of residential properties amounts to 85 percent, 5 percent of the properties have a mixed use and 10 percent a purely commercial use. By region, 52 percent are located in Western Switzerland and the Geneva region, 37 percent in German-speaking Switzerland and 11 percent in Southern Switzerland.
The “Swiss Healthcare Properties” investment group expanded its portfolio during the semester with the purchase of a plot of building land in Ingenbohl-Brunnen (SZ) for CHF 10 million. The plot is adjacent to the existing Seeklinikum Brunnen property and allows various uses. In addition, investments of over CHF 9 million were made in the ongoing new construction projects in Crissier (VD), Boudry (NE) and Orbe (VD). To finance this, a capital increase of CHF 19 million was carried out in April 2021. At the end of June 2021, fixed assets increased by CHF 25 million to CHF 339 million due to the transaction, investments in ongoing construction projects and a positive valuation round.
In the “Oassis” quarter in Crissier (VD), the letting of the 100 retirement flats is developing steadily and positively. Full occupancy is expected towards the end of the year. The opening of the new “Square Santé” health centre in October 2021 will further support the development of the neighbourhood. In an integrated approach to community and regional healthcare, a medical centre for obesity (Clinique de La Source), a centre for cardiovascular diseases (Clinique La Lignière) and a GP practice will offer their services under one roof.
As at 30 June 2021, the portfolio comprises 12 properties (eight existing properties, two new construction projects and two undeveloped sites). 47 per cent of the portfolio’s rental income is attributable to clinics, 16 per cent to medical centres, 13 per cent to age-appropriate housing, 12 per cent to nursing homes, 2 per cent to other uses in the healthcare sector, as well as 6 per cent to office and commercial and 4 per cent to flats. The remaining term of the commercial leases is around 20 years.
The outlook for the second half of the year remains positive. Both investment groups are well positioned and further organic and acquisitive growth is planned. Further capital calls are expected next year for financing.
The 2020 half-year report (1 January – 30 June) is available here (documents section).