Swiss Life Asset Managers has launched a €200 mln open-ended mutual property fund called Swiss Life REF (DE) European Real Estate Living and Working which plans to invest in residential and healthcare as well as office and retail properties.
The fund, which is aimed at German private investors, was created via its subsidiary Swiss Life Kapitalverwaltungsgesellschaft (Swiss Life KVG) under German law and is being supported by German asset manager Corpus Sireo, which has been part of Swiss Life Asset Managers since 2014.
'With the launch of 'Swiss Life Living and Working' at Swiss Life KVG, we are implementing the first new fund product in a series of open-ended and closed-end property funds for institutional and private investors,' commented Stefan Mächler, chief investment officer of the Swiss Life Group. 'We have confidence in the new fund and its investment strategy and have endowed it with starting capital of €200 mln. This emphasises our intention to expand our position in one of the most important investment markets in Europe.'
With a focus on German and European properties, the fund's portfolio will comprise housing and healthcare properties (including retirement homes, care homes, polyclinics, etc) as well as office and retail properties. It is targeting in particular B locations in A cities and A locations in B cities, an approach known as the ABBA strategy. According to the firm, this should set it apart from existing open-ended funds which tend to focus on Germany's top seven cities. It is aiming for a performance of more than 2.5%.
'The ABBA strategy and the expansion to key regional cities in Germany, combined with our extensive local expertise, give us considerably better access to potentially attractive properties,' said Ingo Hartlief (pictured), CEO of Swiss Life KVG.
'With this fund, we are responding to the long-term megatrends of our time, which particularly include the demographic development,' Hartlief added. 'People are living longer, and as a result the need for healthcare properties has already increased enormously and is continuing to grow. Demand for residential properties is also boosted by the positive population forecast for the housing markets in demand. Diversification across different asset classes ensures a stable performance and optimal risk distribution,' he concluded.
