Press release 16 November 2023

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Zurich, 16 November 2023 – The Fund Management Company intends to pay a distribution for the Helvetica Swiss Commercial Fund (HSC Fund) of between CHF 5.00 and 5.35 per unit for the 2023 business year.

• The 2023 distribution is to be within the range of CHF 5.00 to CHF 5.35 per unit, which is on a par with the level of the 2022 distribution.
• The debt financing ratio is to be reduced to below 28 percent by the end of 2023.
• Adjustments will be made to the financing strategy, which foresees 30 to 50 percent of the debt financing with the medium- to long-term maturities.
• The merger with the Helvetica Swiss Opportunity Fund (HSO Fund), slated to take place by the end of 2024 at the latest, is intended to improve liquidity and result in positive synergy effects for investors.

The Fund Management Company of the HSC Fund currently expects a distribution for the 2023 business year that is roughly on a par with that of the previous year. The distribution is predicted to be within the range of CHF 5.00 and CHF 5.35 per unit. This reflects a distribution yield of around 6.5 percent based on the Fund’s current market value per unit. 

The Fund Management Company continues to pursue the clear goal of keeping the debt financing ratio within the 25 to 28 percent range over the long term. It will carry out strategic property divestments in an effort to reduce the ratio to below 28 percent by the end of 2023. At the same time, the Fund’s short-term financing strategy will be adjusted to secure 30 to 50 percent of the mortgages in the medium to long term.

The planned merger between the HSC Fund and the HSO Fund, which should be complete by the end of 2024 at the latest, aims to improve the Fund’s liquidity for its investors, stabilise portfolio returns and achieve broader diversification. The assets will amount to more than CHF 1 billion following the merger, resulting in a stronger weighting for the HSC Fund in the SXI Real Estate Funds Broad Index. The Fund Management Company also expects a reduction in the total expense ratio (TER) due to synergy effects. Additionally, a one-off 14 percent reduction of the management fee to 0.60 percent is planned in 2024 to optimise the Fund’s cost structure even further.

“In an extremely adverse market environment, we are proud to be able to announce another solid distribution for the 2023 business year. This was achieved by our active Asset Management team, which has been doing incredible work in the current business year,” says Hans R. Holdener, CEO of Helvetica.

Further information on the planned merger is available from the Fund Management Company. It will also provide updates on an ongoing basis regarding the next steps.

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About Helvetica
Helvetica Property Investors AG is a leading real estate fund management and asset management company. We offer our clients sustainable value through active, long-term ownership of secure and stable real estate investments. With a fully integrated real estate investment platform, we offer standardized investment products as well as customized investment programs. We are proud of our long-standing reputation for excellent customer service and our commitment to responsible business practices. Our firm is licensed and regulated by the Swiss Financial Market Supervisory Authority FINMA.
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Helvetica Swiss Commercial Fund
The HSC Fund is a Swiss real estate fund listed on the SIX Swiss Exchange and open to all investors. The HSC Fund invests in commercial and industrial properties in the most important economic areas of Switzerland. The fund's portfolio is geared towards long-term value preservation and features high location and property quality as well as broad diversification. The investment objective is primarily the long-term preservation of substance and the distribution of appropriate income. The HSC Fund is authorized by the Swiss Financial Market Supervisory Authority, FINMA.
Listing SIX Swiss Exchange; ticker symbol HSC; Valor 33 550 793; ISIN CH0335507932

Helvetica Swiss Opportunity Fund
The HSO Fund is a Swiss real estate fund open only to qualified investors. The HSO Fund invests in commercial special real estate in the Swiss economic centers. The focus is on fully leased properties with long-term leases and few tenants that generate stable income. The investment objective is mainly to preserve the value of the properties over the long term and to distribute appropriate income. The fund units are tradable over the counter. The HSO Fund is licensed by the Swiss Financial Market Supervisory Authority, FINMA.
Ticker Symbol HSO; Valor 43 472 505; ISIN CH0434725054

Disclaimer
This media release does not constitute a prospectus within the meaning of Art. 35 et seq. of the Federal Act on Financial Services or Art. 27 et seq. of the Listing Rules of SIX Swiss Exchange Ltd, nor does it constitute a Key Investor Information Document (KID) within the meaning of the Swiss Collective Investment Schemes Act or a basic information sheet. It does not constitute an offer or a recommendation to subscribe for or redeem fund units but is intended solely for information purposes. This media release may contain forward-looking statements that are subject to uncertainties and risks and may change. Historical performance is no guarantee of current or future performance. The performance data do not take into account any commissions and costs charged on the subscription and redemption of units. The documents that are solely relevant for an investment decision, the prospectus with integrated fund contract as well as the current annual report can be obtained free of charge from the fund management company. This media release is not addressed to persons resident and/or domiciled outside Switzerland. In particular, this media release may not be made available or handed over to US persons within the meaning of the US Securities Act or US tax regulations, nor may it be distributed in the USA. In case of doubt, the German version shall prevail.