Capital increase for Helvetia (CH) Swiss Property Fund: Subscription period from 7 to 20 March 2023 for existing investors and from 7 to 22 March 2023 for new investors

Media release
Basel, 3 March 2023

Helvetia Asset Management will be carrying out a capital increase for the Helvetia (CH) Swiss Property Fund in order to raise capital of CHF 170 million. The issue proceeds will be used for the acquisition of a geographically broadly diversified real estate portfolio of Helvetia Insurance with a market value of CHF 229.5 million. 

On 17 February 2023, Helvetia Asset Management Ltd announced that it was reviewing the acquisition of a real estate portfolio with a market value of CHF 229.5 million for the Helvetia (CH) Swiss Property Fund. In order to finance the purchase of the properties in question, a capital increase of up to CHF 170 million is to be carried out. In addition, the intention is to raise debt capital of around CHF 60 million for the acquisition of the properties. The subscription period for existing investors will be 7 20 March 2023, while the subscription period for new investors will be 7 22 March 2023. 

The issue of the new units will be executed on a best-effort basis as part of a public offer for subscription in Switzerland. A maximum of 1,625,000 new units will be issued. This will increase the number of units in circulation from 6,500,000 to a maximum of 8,125,000. The issue amount may be reduced if not all the offered units are subscribed to. In this case, the fund manager reserves the right following expiry of the subscription deadline to place any unsubscribed units in the market with all due care, together with the custodian bank or third parties. Helvetia Group, as the anchor investor, intends to participate in the planned transaction.  

The issue proceeds will be used by the fund manager to acquire a real estate portfolio of eight high-quality properties of Helvetia Swiss Life Insurance Company Ltd, Basel, for the fund by way of a cash purchase. On 26 January 2023, FINMA granted the fund manager an authorized exemption from the ban on transactions with related parties pursuant to Art. 63 paras. 2 and 4 CISA in conjunction with Art. 32a CISO for the transfer of the eight properties in question. 

The portfolio to be acquired comprises eight attractive Core/Core plus properties in seven cantons and is characterized by good property and locational quality with high revenue and value stability, tailored to the funds investment strategy. The Helvetia (CH) Swiss Property Fund is thus continuing to grow in line with its communicated strategy while focusing on quality. 

As of 30 September 2022, the funds property portfolio consists of 39 properties with a market value of CHF 862.8 million. After the capital increase, the funds total investment assets will amount to approximately CHF 1.1 billion. According to the roadmap communicated at the time of the launch, a listing is still planned in the foreseeable future. 

Key data on capital increase

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

About Helvetia Asset Management Ltd
Helvetia Asset Management Ltd 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. The company also handles investment advice and asset management, client representation and transaction management for employee benefit institutions, namely for real estate portfolios. Helvetia Asset Management Ltd has its registered office in Basel, Switzerland, and is a wholly owned subsidiary of Helvetia Holding Ltd, St. Gallen, Switzerland.

Disclaimer 
The real estate fund referred to in this media release is exclusively for qualified investors within the meaning of Art. 10 para. 3 and Art. 10 para. 3ter of the Swiss Federal Collective Investment Schemes Act (CISA). The information on the real estate fund is intended exclusively for advertising purposes 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 Ltd, Steinengraben 41, 4002 Basel, Switzerland, or the custodian bank, Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, Switzerland.