The context for real estate investing is also clouded. Some real estate funds have therefore scaled back their capital plans.
In recent years, the volume in the fund sector, including capital increases in real estate companies, has been between four and six billion francs per year, explains Anastasius Tschopp, head of the Solutions division at Swiss Prime Site. If there are three billion francs at the end of the year and not five billion francs, that does not mean that the money is gone. “There is a certain likelihood that some of this will be invested later,” Tschopp believes. Real estate is still a very attractive asset class.
Stock market correction burdened
Many listed funds are currently heavily discounting due to the stock market correction and some have therefore postponed issuance. Many of these funds had posted high valuation discounts in a very short time.
In addition, the equity share in their asset allocation has slightly decreased for some investors. So they wanted to wait a bit. However, many of these investors are likely to participate in this or the next capital increase, Tschopp says.
Raise only the necessary capital
SPS Solutions, which this year plans to increase capital in the “Investment Fund Commercial” (IFC) and “Akara Swiss Diversity Property Fund”, recently announced that the issue amount for the Akara Fund will now be CHF 62 million and no more, as announced in August, is expected to be between 100 and 150 million francs.
CEO Tschopp justifies this by saying that it takes a long time between the announcement of the first intentions and the completion of the capital increase. Furthermore, SPS Solutions only borrows as much money as can be invested immediately. “Our pipeline is structured in such a way that we can immediately invest 62 million francs (with Akara Diversity PK).” The pipeline of both funds contains very attractive properties that will be purchased by the end of the year.
Confident SPS Solutions
CEO Tschopp is also confident. So far, in 2022, the company has bought properties worth 1.5 billion francs, raised more than 500 million francs of capital in all products and welcomed 50 new investors.
Tschopp therefore also confirms the previous medium-term objectives for the company of the SPS group: “By 2025, the assets under management are expected to increase to ten billion francs and lead to an operating profit (EBIT) of more than 50 million francs. 2022 we expect around 30 million EBIT. ” Tschop said.
The SPS share temporarily loses 0.62 percent on the SIX to CHF 80.00.