SF Retail Properties Fund – Four additional properties bought for a total of CHF 40.34 million
- Purchase of three properties in St. Gallen, Frauenfeld and Delémont, with revenue effect from 1 December 2019
- Registration of a new build project in Zweisimmen, with revenue effect from 1 July 2020
- Increase in target rental income by CHF 2.47 million to CHF 43.3 million
- Increase in lettable space by 10 353 m2 to a total of 230 040 m2
Delémont, Rue de l'Avenir 5
Rue de l'Avenir 5 was bought to facilitate the consolidation of the existing properties in Delémont. Following the purchase, SF Retail Properties Fund is the sole owner of these properties. This purchase is of crucial importance for the further development of the site. The plan is to start on the complete renovation of the properties at Rue de l'Avenir 3 and 5 in 2020, with handover to tenants scheduled for Q3 2021. The purchase price for the new property was CHF 2.0 million.
St. Gallen, Breitfeldstrasse 1
We acquired a fully leased retail property in the immediate vicinity of the existing property at Breitfeldstrasse 7. Two tenants who have operated successfully at this location for many years are renting two storeys with lettable space of 2 406 m2. Various parts of the building have been renovated during the past few years. The last renovation dates from 2018. Annual rental income amounts to CHF 519 000. At a purchase price of CHF 8.1 million the gross yield is 6.41%.
Frauenfeld, Zürcherstrasse 297
The Zürcherstrasse 297 property is located on the main access road to Frauenfeld. The property is home to various retail outlets and the anchor tenants are Denner and Qualipet. The property offers 3 423 m2 across two storeys and an underground parking garage. This established local shopping centre is much appreciated and frequently visited by customers. This property was purchased for CHF 11.04 million. The annual target rental is CHF 702 000 and the gross yield is 6.36%.
Zweisimmen, Märithalle
SF Retail Properties Fund has acquired a new build project of Migros Aare in Zweisimmen. The new building will be handed over in July 2020, ready for immediate occupation. The ground floor will house a Migros supermarket and a Denner Discount store. Various concepts are being investigated for the chalet directly next to the new building. The total lettable space on the ground floor has been rented to Migros Aare under a 15-year contract lease. MedBase will open a group practice on the first floor, where various general practitioners and specialists will offer their services to the public from rooms covering an area of 400 m2. In addition to the doctors' rooms, there will be 13 apartments on the top floor, which will be available for rental from July. The property was registered for a purchase price of CHF 19.2 million and will be added to SF Retail Properties Fund's portfolio with revenue effect from July 2020. The annual target rental is CHF 988 000.
Portfolio
Following these last purchases in 2019, the value of the portfolio has increased to CHF 761.1 million as of December 2019 and comprises 88 properties in 20 cantons. With a target rental of CHF 43.3 million, the gross yield is 5.69%. SF Retail Properties Fund will publish its 2019 financial results in March 2020.