Investment strategy
To achieve risk-adjusted distributions and performance by building a sustainable distributing residential portfolio of residential properties across Switzerland.
Purchasing profile residential
Macro-locations
Avobis focuses on economically active regional centres and their agglomerations, as well as on municipalities with attractive population growth and structure.
Micro-locations
Here, Avobis concentrates on residential and micro-locations in economically active areas that are well connected to public transport and private transport and are of above-average quality.
Sustainability
Avobis selects investment properties on the basis of holistic sustainability criteria, among other things. Our focus is on the transparent measurability of relevant criteria – including ESG criteria. We collaborate intensively with Wüest Partner.
Age andcondition of properties
Avobis plans to purchase mainly recent or new properties for this fund. In the medium term, these won’t require major refurbishment and will generate higher net income due to low operating costs, among other things.
Volume of properties
Avobis will purchase properties for the fund from around CHF 5 million to around CHF 35 million per property.
Relative rent levels
The focus is on affordable rents – these are to be set relative to the respective location.
Purchase yields
Avobis does not put up with excessive prices, but rather invests in and acquires properties that can generally be acquired via the extensive Avobis network and in some cases “off-market” as well.
Strategic concentration
Avobis relies on a certain degree of predatory competition, with old residential buildings (in corresponding condition) giving way to new buildings – featuring better comfort and a sustainable eco-balance – at the same location. This predatory competition has also been proven by various studies. Only exceptionally, and only to a very small extent, will there be commercial uses in this portfolio. Firstly, a strong stock of properties will be built up that have a steady cash flow. In a second phase, properties with value-added potential can be added.
Target values portfolio
Debt ratio
Avobis is aware of the positive effects of sustainable and sensible external financing. In the long term, the fund should have a moderate debt ratio of around 25%; in the development and start-up phase, the debt ratio will be around 40% in order to quickly achieve good diversification and risk distribution.
Vacancy and other cash flow components
Avobis has extensive experience in real estate appraisal and asset management. We maintain a realistic, preferably conservative assessment, model all relevant components and thus prepare a comprehensive ten-year plan for every property.
Purchasing yields
3.5%
Distribution yield
3% p.a.
