An investment company with a focus on real estate development
Seraina Real Estate AG buys existing residential properties with current rental income in preferred locations with high development potential, develops these properties by means of densification and repositioning and sells them after obtaining the building permit. The current rental income covers the majority of the development and financing costs. Thanks to the sale with a building permit, we do not bear any construction risks with Seraina Real Estate AG. We assume project durations of 3 to max. 5 years.
9
% p.a.
Investment target return (IRR)
150
million
Target portfolio in CHF
years
Project duration / holding period
Background
The current real estate economic situation is characterized by rising rents in Switzerland's economic centers due to a continuing high level of immigration and, in contrast, a decline in building permits for new apartments. The subdued willingness of institutional investors to invest in real estate due to the current over-allocation is reinforcing this trend and leading to an increase in disposals.
The implementation of densification measures, compliance with sustainability targets and the conversion of existing properties are a strong breeding ground for change in urban areas.
Target investment return
The long-term target return on investment of the real estate investments to be constructed in accordance with the latest construction standards should be > 8.0% p.a.
Investment objective & investment strategy
The investment objective of Seraina Real Estate AG (SREAG) is to generate a return by acquiring existing properties in attractive locations in Switzerland with ongoing cash flow from rental income and high development potential.
Existing properties with high development potential are to be developed and repositioned in a timely manner. The costs of project development and debt capital are largely borne by current rental income.
Benefits
By investing in SREAG, investors benefit from:
-
Access to a portfolio with high growth potential
-
Active management by an experienced real estate developer with a proven track record
-
Sale with building permit
-
No construction risk
-
Investment target return in compliance with the highest sustainability standards
Acquiring with foresight.
Thanks to our strategy of acquiring properties with ongoing rental income, we are able to achieve a high level of debt financing. This reduces borrowing costs to a minimum and increases the ROE accordingly.
Sustainable development.
The existing properties are to be developed and repositioned in a timely manner with a view to meeting high ESG criteria.
Financing with security.
The financing of project development and debt capital is largely secured by current rental income.