Patrimonium Investment Foundation performs well in a challenging market environment. The Foundation increased its investment assets to over CHF 1.3 billion in the 2023 financial year, primarily through organic growth in a market environment characterised by lower valuations, rising rents and a growing housing shortage.
The investment assets of the Swiss Residential Properties investment group increased organically by a moderate CHF 10 million to CHF 888 million in the financial year. The new construction project in Kriens was successfully completed in September 2023 and the development pipeline was steadily developed during the financial year. In Baar, an important milestone was reached in November 2023 with the public’s approval of the zoning plan amendment for the spinning mill site. The debt financing ratio was reduced to 15% during the financial year with two capital calls and thus adjusted to the changed market environment. The investment group closed the 2023 financial year with an investment return of -0.07%, which was primarily due to a lower valuation of the portfolio.
In December 2023, the focus on residential use was strengthened with the sale of the property in Meyrin Chemin Grenet 18, which was used purely for commercial purposes. A centrally located residential property in Lausanne Chemin de la Prairie 50 was acquired in April 2024 with part of the proceeds from the sale. For 2024, the investment group is aiming for selective growth through acquisitions and will continue to develop the project pipeline.
As at 31 December 2023, the portfolio consisted of 63 existing properties, one ongoing new construction project and one undeveloped plot. The proportion of residential properties is 83 per cent, seven per cent of the properties have mixed use and ten per cent have commercial use. By region, 49 per cent are located in Western Switzerland and the Lake Geneva region, 39 per cent in German-speaking Switzerland and 12 per cent in Southern Switzerland. The investment group has excellent long-term growth potential with development projects in Lugano, Baar, Muttenz, Birsfelden, Kloten, Fribourg and Crissier.
The assets of the Swiss Healthcare Properties investment group rose by CHF 34 million to CHF 422 million in the financial year. It thus continued its growth. A plot of land with a new construction project was acquired in Bülach at the beginning of 2023. The completion of the two new construction projects in Orbe (retirement flats and areas used for medical purposes) in September 2023 and in Boudry (nursing home and retirement flats) at the end of 2023 will reduce the project ratio and increase rental income. The return on investment in the financial year was 1.26%. For the 2024 financial year, the investment group is aiming for growth through acquisitions and the realisation of construction projects.
As at 31 December 2023, the portfolio consisted of twelve completed buildings, two ongoing new construction projects and two plots of building land. Based on target rental income, 73% of the portfolio is used for medical purposes, 17% for senior living and 10% for other uses. 39% of the portfolio is accounted for by clinics, 20% by medical centres, 14% by nursing homes, 17% by retirement homes, 3% by flats, 2% by other medical uses and 5% by other uses.
In August 2023, the Investment Foundation received a positive audit certificate from the Occupational Pension Supervisory Commission for the investment guidelines of the new Sustainable Infrastructure (evergreen) investment group. The investment group was launched in February 2024 with the first capital call and an initial investment consisting of a portfolio of solar systems, batteries and charging stations for private households in Germany.
The investment group invests in clean electrification, energy storage and distribution, essential infrastructure, communication and digitalisation and sustainable mobility. The investment group focuses in particular on co-investments and primary and secondary transactions in Europe and North America. The investment group has a conservative risk profile and an expected return of 6 to 8%.
The investment groups of the Patrimonium Investment Foundation are open for subscriptions.
The 2023 annual report is available here (“Documents” section)