Information on the Target

TrustStone Real Estate SICAV, a prominent player in the real estate investment sector, has successfully completed a capital increase of CHF 27 million between June 30 and July 8, 2025. This capital raise was executed with high demand, as evidenced by its oversubscription, showcasing considerable interest from new investors sourced through Dominicé & Co – Asset Management.

With the proceeds from this capital increase, TrustStone aims to acquire a high-quality commercial property strategically located in Pully, Switzerland. This acquisition is contingent upon the successful completion of the capital increase and is expected to enhance the geographical diversification of TrustStone’s portfolio while optimizing its overall balance by lessening the reliance on the Etoy property.

Industry Overview

The Swiss real estate market continues to show robust growth, driven by strong demand for commercial spaces and a stable economic environment. The country's real estate sector, characterized by its transparency and security, attracts both domestic and international investors. Demand for well-located commercial properties, especially those close to public transportation and amenities, remains high.

In recent years, commercial real estate has benefitted from Switzerland's low vacancy rates and the ongoing influx of businesses seeking to establish a presence in urban areas. The proximity to essential services, such as public transport, significantly enhances property values and rental income stability, making this sector particularly attractive for investment.

Moreover, with the increasing emphasis on sustainability and energy-efficient buildings, investors are now looking for properties that not only provide good yields but also meet modern standards. This trend supports the long-term resilience of the commercial real estate market in Switzerland, positioning it well for future growth.

As of 2025, the Swiss investment climate is favorable for real estate investment, aided by low-interest rates and a strong institutional backing for property acquisitions. Investors are keenly aware of the stabilizing effects that diversified property portfolios can have on overall returns.

The Rationale Behind the Deal

The capital increase undertaken by TrustStone Real Estate SICAV is a strategic move to bolster its portfolio by introducing a property with strong tenant credibility. The acquisition of the new commercial property in Pully serves multiple purposes: enhancing geographical diversification, improving rental security through well-established tenants, and increasing the average return on the portfolio’s cost price.

This transaction not only aligns with the SICAV's strategy but also opens avenues for reducing the fund's overall debt ratio while optimizing the distribution of market value. By investing in a property with a solid gross yield of 4.98% and a favorable market value, TrustStone is positioning itself for future financial robustness.

Information About the Investor

Dominicé & Co – Asset Management is a well-regarded investment firm specializing in asset management with a focus on real estate. Their proactive approach and established relationships with investors have enabled them to facilitate significant transactions, like the recent capital increase for TrustStone Real Estate SICAV. The firm’s strategic guidance in identifying lucrative investment opportunities highlights its expertise in maximizing returns for its clients.

The firm has cultivated a deep understanding of the Swiss real estate landscape, allowing it to identify high-potential assets that align with emerging market trends. Through its diligent management practices, Dominicé & Co aims to deliver high-yield investment opportunities to its stakeholders, further demonstrating its commitment to enhancing portfolio performance for its clients.

View of Dealert

This transaction is viewed as a potentially strong investment opportunity given the favorable characteristics of the property involved and the current climate of the Swiss real estate market. TrustStone's acquisition of the Pully property, coupled with its high-quality tenants, positions it for solid rental income and long-term growth.

The strategic intent behind reducing reliance on the Etoy property, along with enhancing geographical diversity, bodes well for the portfolio's overall stability. The gross yield of 4.98% is competitive within the current market, reflecting a sound investment rationale for stakeholders.

Moreover, the strong investor demand demonstrated through the oversubscription of the capital increase underscores a positive market sentiment toward TrustStone’s growth strategy. This suggests that investors are optimistic about the future performance of the SICAV, further solidifying the prospect of profitability.

Overall, this capital increase and the subsequent property acquisition by TrustStone Real Estate SICAV could be a prudent move, providing enhanced returns while positioning the fund favorably amidst a resilient real estate market in Switzerland.

View Original Article