The capital increase of Swiss Life REF (CH) ESG Swiss Properties, conducted from July 2 to July 12, 2024, has been successfully completed. The total issuance volume amounted to approximately 610 million Swiss francs, making it the largest capital increase of a listed Swiss real estate fund to date, according to a statement released on Tuesday.

Among the Largest Real Estate Funds

With a market capitalization of around 2.5 billion francs, the fund now ranks among the five largest publicly listed real estate funds in Switzerland.

The issuance was conducted on a «best-effort basis» as part of a public rights offering in Switzerland. Three subscription rights entitled the holder to acquire one new share. A total of 5,400,000 new shares were issued, corresponding to a subscription rate of 100 percent. The new shares will be fully paid on July 17, 2024, bringing the total number of shares in circulation to 21,600,000.

Acquisition of a New Real Estate Portfolio

The capital increase will finance the acquisition of a real estate portfolio valued at around 700 million francs, contributing positively to the net income of Swiss Life REF (CH) ESG Swiss Properties. The portfolio, acquired from Swiss Life, consists mainly of residential properties in well-connected suburban areas.

In addition to the portfolio acquisition, the funds will be invested in the renovation and densification of existing residential buildings. Furthermore, the debt financing ratio will be reduced to around 23 percent.