16 December 2022 | Nicolas Beutler

SF Sustainable Property Fund: Annual review 2022

The SF Sustainable Property Fund is able to further improve the portfolio in a challenging environment, thus continuing the positive performance of previous years. In addition, stable performance is expected in the residential sector due to solid fundamentals for the Swiss economy.

Real estate portfolio

In the first half of 2022, four new properties were acquired for the SF Sustainable Property Fund with a market value of approximately CHF 51.0 million. The second half of the year was characterised by a major acquisition in the economic area of Lucerne, which improves the diversification of the portfolio. In addition, two properties in eastern and southern Switzerland that were not in line with the strategy were sold, further enhancing the portfolio.

Renewal projects and developments

The renovation and development projects are proceeding extremely successfully. The complete renovation of the 20 flats at Via Roncobello 12 in Pregassona was completed in November 2022. The interest in the energy-efficient property is great, so that 50% of the flats have already been rented despite the upcoming turn of the year.

The total renovation of the property at Neuhardstrasse 9/11 in Olten is also progressing well: the optimal positioning on the market is underlined by the high occupancy rate of over 95% before completion.

Various renovation projects are also scheduled for implementation in 2023. For example, the project at Via Giuseppe Cattori 5 in Locarno was brought to completion. This is a residential building from the 1960s in a very good micro-location - within walking distance of the lake and the Piazza Grande - which is being completely modernised. The floor plans will be adapted to today's needs, the façade will be energetically upgraded, and the fossil heating medium will be replaced by an air-to-water heat pump in combination with a photovoltaic system.

Sustainability

In the first half of 2022, the fund's sustainability strategy was reviewed and led to the sharpening of the investment policy, which was incorporated as part of the fund contract adjustments at mid-year. The sustainability approaches of impact investing, ESG integration and exclusion checks (negative screening) were supplemented by clear metrics, thus significantly increasing transparency vis-à-vis investors. The core of the strategy is and remains the energy upgrade of existing properties, which makes an important contribution to the energy transition.

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