SF Retail Properties Fund: Acquisition of a mixed-use property in Kirchberg BE

• Fully let property with a market value of CHF 40.6 million purchased in Kirchberg BE
• Mixed use with 7 742 m² of total retail, storage and residential space
• Long-term rental contracts with Migros, Denner, Valora and Dropa Drogerie
• CHF 1.76 million of additional rental income
• The property has a WAULT of 8.1 years

The property in Kirchberg is a perfect addition to the SF Retail Properties Fund's portfolio. The acquisition broadens the tenant structure and the property is ideally suited to the fund's investment strategy with its focus on daily necessities. The business tenants are well established within the community and have seen substantial increases in revenue in recent years. A tenant in the industrial sector has its offices on the first floor. All commercial spaces are let for the long term. The property has a WAULT of 8.1 years.

The property was built in 1916 and was initially used for production and administration. The entire building was renovated and repurposed for its current use in 2010. Energy efficiency measures were also implemented as part of the overall renovation and a heat pump was installed. The current retailers Migros, Denner, Valora and Dropa Drogerie have been renting the ground floor since the renovation. Their rental contracts have terms of up to ten years. The attractive mix of accommodation comprises eight 3.5-room apartments, five 4.5-room apartments and seven 2.5-room loft apartments. The apartments are fully let. There are 115 parking spaces in the underground garage and 35 external spaces for the use of both tenants and customers.

As a result of the acquisition, the market value of the SF Retail Properties Fund now stands at CHF 845.5 million, with a target rental income of CHF 47.25 million. The purchase of the property is in line with the fund's strategic focus on retail properties specialising in daily necessities. The long-term rental contracts with first-rate tenants ensure a highly stable yield, while the transport connections and flexibility of use mean that the property will retain its appeal in the long term.

Details of the acquisition