Suisse Romande Property Fund’s primary focus is on "core" and "core plus" properties, whereby on a selective basis value added or opportunistic properties might be acquired, with the aim of achieving sustainable long-term returns by increasing the value of the portfolio and continuously developing earnings. Therefore, the following investment categories have been identified:
Existing and new PropertiesCore
It includes real estate properties with an exceptional/prime location. Properties in scope are high level quality buildings combined with creditworthy tenants and thus low rental default risk.Core Plus
It shall comprise properties which comply with the core investment style criteria and have on top development potential. Rental agreements are shorter-dated.Value added
Real estate properties in scope are qualified by good to very good location. The value enhancement components play a relevant role. Value added characteristics to be taken into account might be:
(i) Physical improvement to the asset allowing to command higher returns (e.g. creation of new floor spaces)
(ii) Acquisition of assets requiring refurbishment and/or leasing in the near term
(iii) Refurbishment of older building to meet institutional Grade A standards
(iv) Acquisition of single tenant buildings and reposition them into multi tenants buildings
Value added properties might allow to get higher returns and once repositioned can be sold into a liquid core investment sales market.Opportunistic
This style comprises, among others, in particular properties with greater needs for renovation and repositioning as well as middle to high rental default risk. The risk profile of such properties are increased and have also some speculative elements.
Projects under Development / Constructions
In the medium term, the Fund will progressively develop its building projects so as to offer its investors the opportunity to benefit from value creation of the underlying investment.