Schroders ImmoPLUS plans to acquire two attractive real estate investments for about CHF 450 million.
In order to finance the acquisitions, the Fund is considering a capital increase and, as a result, is bringing forward the distribution for the 2018/2019 financial year.
Schroder Investment Management (Switzerland) AG, Zürich, as fund manager (the «Fund Manager») announces today, that it is considering a capital increase for Schroder ImmoPLUS (the «Fund») to strengthen the equity base by up to CHF 185 million. The distribution for the 2018/2019 financial year will therefore be brought forward to 11 December 2019 (payment date), which will result in a clear separation of these two steps.
The issue proceeds of the capital increase together with an increase in debt capital will be used for the growth of the existing portfolio through acquisitions. Accordingly, the Fund Manager plans to acquire two attractive commercial properties in Geneva and north-western Switzerland before the end of this year, which will offer investors secure long-term income from well-known tenants with strong credit ratings. Both investments with a total value of around CHF 450 million are located in attractive and well-developed locations for their respective uses. One office property is centrally located in the city centre of Geneva and has an average lease term of 7.8 years, while the second property is a research centre in north-western Switzerland with a fixed lease term of 30 years. Through these two acquisitions, the portfolio will be further strengthened and the risk/return profile will be further improved, whereas no dilution for investors is assumed.
In order to provide investors with all options (including reinvestment) with regard to the contemplated capital increase, the Fund Manager has decided to bring forward the distribution for the 2018/2019 financial year originally planned for 20 December 2019. The payment will therefore now take place on 11 December 2019. Based on the further quality improvement of the portfolio resulting from the new investments, a moderate increase in the pay-out ratio to 80-85% of the profit generated is targeted from the current financial year onwards.
More detailed information on the planned capital increase and the investment opportunity will be published promptly.
Schroder Real Estate
Schroder ImmoPLUS was launched in September 1997 and invests in real estate in attractive and well- developed locations throughout Switzerland. Preference is given to investments in profitable commercial properties in economically prosperous regions. The investment objective is to generate attractive long-term returns for investors.
As a global, active asset manager, Schroders has managed a wide range of pan-European real estate products since 1971 and currently manages real estate assets (AuM) of around CHF 20 billion. More than 200 employees in six locations in Europe invest directly and indirectly and offer regionally and sectorally diversified funds with different risk-return profiles. In Switzerland, Schroders manages assets totalling around CHF 3 billion with its "Schroder ImmoPLUS" fund and the investment group of the Zurich Investment Foundation "Immobilien Europa Direkt". (Source: Schroders as at November 2019)
Important Information
This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder ImmoPLUS (the “Fund”) that is managed by Schroder Investment Management (Switzerland) AG (the “Fund Manager”). Subscriptions for shares of a managed investment fund can only be made on the basis of the latest prospectus and the latest audited annual report (and the subsequent unaudited semi-annual report, if published). The risks connected with an investment are described in detail in the fund contract and the prospectus. The fund contract, the prospectus and the simplified prospectus (if applicable) as well as the annual and semi-annual report year may be ordered free of charge from Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich.
All statements, opinions and views contained in this document relating to future events or the possible future performance of any managed investment fund merely represent the Fund Manager’s own assessment and interpretation of information that was available to him at the relevant time. No representation is made or assurance is given that such statements, opinions and views are correct, or that the underlying information is accurate. Statements regarding the past performance may not be understood as indication of the future performance. A good past performance may possibly not be repeated in the future. The performance shown does not take account of any commissions and costs charged when subscribing and redeeming units.
The Fund managed by the Fund Manager may be offered or distributed in or from Switzerland only by licensed distributors. The Fund managed by the Fund Manager is not registered under the US Securities Act of 1933. Shares may not, directly or indirectly, be offered, sold or transferred in the United States or outside of the Unites States to US nationals.
Further Information:
https://www.schroders.com/en/ch/asset-management/about-schroders2/press-releases/
Roger Hennig, Head Real Estate Switzerland,
roger.hennig@schroders.com Tel. +41 (0) 44 250 12 91
Alice West, Senior Corporate Communications Manager Switzerland,
alice.west@schroders.com Tel. +41 (0) 44 250 12 26
Note to Editors
Schroders plc
Schroders is a global investment manager with more than 215 years’ experience of helping our clients meet their goals, fulfil their ambitions, and prepare for the future. Schroders currently manages CHF 551.5 billion and employs over 5,000 people in across six continents.*
Schroders is listed on the London Stock Exchange and is a member of the FTSE 100. It also remains in part a family business, with almost half of voting shares held by the Schroder family. Independence and long-term thinking are central to our business philosophy – values reflected in our steady ownership structure.
At home in Switzerland for over half a century – here we have three businesses; each with its own emphasis, all with the same clear focus on meeting clients’ needs and adapting to a changing world:
- Schroder Investment Management (Switzerland) AG is our investment management business. It offers institutional and private investors a wide range of Swiss-domestic and foreign-domiciled funds, along with bespoke investment mandates.
- Schroder & Co Bank AG provides bespoke Wealth Management services to private individuals, family offices, external asset managers and charities.
- Schroder Adveq is a leading private equity asset manager serving institutional investors, namely pension funds, insurance companies and others throughout the world. Our combined Swiss team is made up of around 400 people. Together they are responsible for a total of CHF 79.2 billion.**
Find out more about Schroders at www.schroders.ch
*as at 30 June 2019
**as at 31 December 2018
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