The Edmond de Rothschild Real Estate SICAV – Commercial Income Sub-Fund invests in commercial real estate securities in Switzerland that generate an initial rental yield and aims in particular to build a sustainable portfolio by integrating environmental, social and governance ("ESG") aspects into the management of the real estate portfolio, its assets and stakeholders (integration principle) and by applying a consistent exclusionary approach in particular by the establishment of criteria concerning the admission of tenants.

In order to pursue the investment objective set out above, the sub-fund invests in mainly commercial properties in Switzerland's major urban centres and their agglomerations with attractive return prospects. The commercial sectors mainly targeted by the compartment will be modern offices, small logistics and light industry, i.e. buildings intended to accommodate administrative, artisanal, commercial, storage and light industrial production activities and logistics assets promoting flows related to new forms of distribution such as e-commerce, delivery on the last mile as well as real estate managed by an operator, such as senior residences, student residences, coworking, hotels, para-hotels and assets related to education and health etc.

The sub-fund aims to offer investors:

  • A sustainable distribution resulting from rental income secured by long-term leases with quality tenants;
  • An appreciation of the net value of assets crystallized by the development of rental statements and by investments with added value made in buildings.

The manager intends to create value through active management through:

  • Sourcing of quality assets that contribute to the sub-fund's recurring performance;
  • A search for capital gains by making the most of market opportunities;
  • Increasing revenue and value by actively engaging with tenants;
  • Improving the ESG positioning of the portfolio.

The portfolio's risk profile is diversified through several aspects:

  • Geographical distribution of investments (mainly cantons of Geneva and Vaud);
  • Multi-sector tenants;
  • Balanced distribution of lease maturity.

The target average size of objects is 10 MCHF.

The maximum leverage allowed is 50% in the first 3 years, 40% in the4th year, then reduced to 33.33%.

Target allocation

Target allocation - 40 % Target allocation - 40 % Target allocation - 20 %
Modern Office 40 %
Industrial 40 %
OpRe 20 %