2020

29.04.2020 – Helvetia Holding AG

First issue of Helvetia (CH) Swiss Property Fund: Subscription period from 6 to 27 May 2020

Media release

Basel, 29 April 2020

First issue of Helvetia (CH) Swiss Property Fund: Subscription period from 6 to 27 May 2020

The launch of Helvetia (CH) Swiss Property Fund is scheduled for 3 June 2020. Qualified investors may subscribe for units in the Fund from 6 to 27 May 2020, 12:00 noon. The relaunch enables entry at the net asset value (NAV) into a broadly diversified real estate portfolio with a high residential component, very low vacancy rates and stable rental income

With Helvetia (CH) Swiss Property Fund, investors have the opportunity for the first time to participate in a real estate fund of Helvetia Asset Management AG. This Fund will invest directly in attractive real estate assets in Switzerland, mainly in large and mid-sized towns and cities and their conurbations. The portfolio will for the most part be invested in residential properties, supplemented by mixed-use and commercial properties.

Attractive cash flow return as investment objective

The portfolio will be built up primarily through portfolio transactions from the insurance portfolio of Helvetia Swiss Insurance Company Ltd, which will provide the Fund with stable rental income from day one. Selective purchases can also be made on the market. The investment objective of the Helvetia (CH) Swiss Property Fund is to ensure an attractive long-term cash flow return.

The initial issue is aimed exclusively at qualified investors and will have a volume of up to CHF 450 million. The relaunch enables entry at the net asset value (NAV). The Helvetia Group will also invest in the Fund. The issue proceeds will be used to acquire a broadly diversified real estate portfolio with 29 properties and a total value of around CHF 532 million from Helvetia Swiss Life Insurance Company Ltd, Basel.

Focus on cities or regional centres

The property portfolio to be acquired consists of 23 residential properties and six mixed-use residential and commercial properties in and within close proximity to major cities or in regional centres. Geographically, the properties are spread over the regions of Northwestern Switzerland (28% of market value), Zurich (19%), Lake Geneva (18%), Eastern Switzerland (10%), Central Switzerland (9%), Bern (7%), Western Switzerland (7%) and Southern Switzerland (3%). The portfolio has a high residential component of 83% of the target rental income and a very low vacancy rate of only 3.3% as of mid-April 2020.

The fund manager for the Helvetia (CH) Swiss Property Fund will be Helvetia Asset Management AG. Helvetia Insurance will continue to provide property management and fiduciary construction services. The custodian bank and distributor is Zürcher Kantonalbank. Following the launch of this Fund, Bank J. Sarasin Ltd will ensure OTC trading. A listing on SIX Swiss Exchange is planned in three to five years.

Fund information

Name

Helvetia (CH) Swiss Property Fund

Security / ISIN

Security: 51383832 / ISIN: CH0513838323

Legal form

Contractual real estate fund under Swiss law

Fund domicile

Switzerland

Investor group

Limited to qualified investors pursuant to article 10 para. 3, 3bis and 3ter CISA

Investment period

Unlimited

Fund currency

CHF

Income use

Distributing

Financial year

1 October to 30 September

(shortened first financial year: 3 June to 30 September 2020)

Issue volume

4,500,000 units maximum

Issue type

The issue will be carried out on a best-effort commission basis as part of a placement in Switzerland.

Subscription period

The subscription period lasts from 6 to 27 May 2020,

12:00 noon (CEST).

Allocation

Allocation is expected to be announced on 29 May 2020.

Designated allocations at third-party conditions

  • Helvetia Swiss Insurance Company Ltd, St Gallen:
    up to CHF 30 million
  • Helvetia Swiss Life Insurance Company Ltd, Basel:
    up to CHF 10 million
  • Helvetia Insurance Pension Fund, St Gallen:
    Up to CHF 40 million

Payment

3 June 2020

Delivery of units

Through SIX SIS AG

Issue price and

issuing commission

CHF 102 net per unit including 2.00% issuing commission in favour of the fund managers, custodian bank and/or distributor

Use of issue proceeds

The issue proceeds will be used to purchase a real estate portfolio with 29 properties and a total value of around CHF 532 million from Helvetia Life Insurance Company Ltd, Basel.

Fund manager

Helvetia Asset Management AG, Basel

Portfolio management

Helvetia Asset Management AG, Basel

Custodian bank

Zürcher Kantonalbank, Zurich

OTC trading

J. Safra Sarasin Bank, Basel

Audit firm

KPMG AG, Zurich

Valuation expert

Wüest Partner AG, Zurich

Distribution

Zürcher Kantonalbank, Zurich

The issue prospectus can be found on www.swissfunddata.ch or www.helvetia-am.ch.

For further information please contact:

Analysts

Susanne Tengler

Head of Investor Relations

Phone: +41 58 280 57 79

investor.relations@helvetia.ch

Media

Jonas Grossniklaus

Senior Manager Corporate Communications & PR

Phone: +41 58 280 50 33

media.relations@helvetia.ch

About Helvetia Asset Management AG

Helvetia Asset Management AG is regulated by the Swiss Financial Market Supervisory Authority, FINMA, and provides fund management and asset management services. It offers collective investment schemes and is an independent fund manager operating in the interests of its investors.

Helvetia Asset Management AG has its registered office in Basel, Switzerland, and is a wholly owned subsidiary of Helvetia Holding AG, St. Gallen, Switzerland.

Disclaimer
The real estate fund referred to in this media release is exclusively for qualified investors within the meaning of Article 10(3) 3bis to 3ter of the Swiss Act on Collective Investment Schemes (CISA). The information on the real estate fund is intended exclusively as information and does not constitute legal, tax or financial advice, nor is it an offer or a recommendation to buy or sell investment instruments or other financial services or a solicitation or invitation to submit an offer. The sole binding basis for the purchase of or subscription to fund units is the fund agreement, including the appendix, and the latest annual report. These documents can be obtained free of charge from the fund manager, Helvetia Asset Management AG, Steinengraben 41, 4002 Basel, Switzerland, the distributor, Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, Switzerland, or the custodian bank, Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, Switzerland.

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