Swiss real estate asset manager Realstone has acquired two buildings in Nyon and Yverdon-les-Bains for a combined CHF 160 mln (€163 mln).
The acquisition was conducted by Solvalor 61, Realstone’s real estate investment fund targeting residential properties in French-speaking Switzerland and the Lake Geneva region.
A residential complex in Nyon (Quartier de la Levratte 8-40) with 300+ two-to-four room apartments, 24,000 m2 of residential rental area, and 2,300 m2 of commercial space was purchased for CHF 140 mln (€143 mln). The property offers a view of Lake Geneva, is less than 10 minutes from the CFF station, and has 370 parking spaces. It has a very low vacancy risk, the share of loss on rent being only 0.2%.
Constructed in 1972, the buildings are undergoing upgrades to connect to the district heating network of Nyon. This will improve their energy efficiency to an estimated "B" rating under the Cantonal Energy Certificate for Buildings (CECB) standards.
The 4,700 m2 Yverdon-les-Bains residential building (Rue du Cheminet 31-39), acquired for CHF 20 mln (€20 mln), consists of 78 mostly-renovated apartments and features good public transport access.
The current energy efficiency rating of the building is a "D" according to the CECB, but the asset manager is planning future energy renovations in the medium term. The property offers an estimated 15% potential increase in rental income after the renovations are complete.
The off-market purchases were conducted at gross yields of 4.7% and 5.6%, respectively, exceeding the fund's average (4.4%), and aligning with Solvalor 61's ESG strategy, aiming for energy efficiency improvements.
The estimated additional rental income of CHF 7.6 mln (€7.7 mln) is set to positively impact the fund’s net income.
