Article published in Immobilier.ch No. 1123, on October 28, 2024, by Serge Guertchakoff, Editor-in-Chief.
During the capital increase period for the Dominicé Swiss Property Fund, we spoke with Senior Fund Manager Diego Reyes.
1. What sets the Dominicé Swiss Property Fund (DSPF) apart as the top-performing listed Swiss real estate fund over the past three years?
The DSPF’s outperformance is driven by several factors. In 2021, we strengthened our team with experts in securitization, asset management, finance, and construction, adopting a rigorous institutional approach. This improvement led to a cumulative performance of over 15% over three years, surpassing the SIX Real Estate Funds Broad Index (SWIIT) by 21% for the same period. Another essential factor is the transparency of our strategy and the ethics that guide our management. We aim to establish a trusting relationship with our private and institutional investors who have supported us for over ten years. This stability, combined with responsible governance, has greatly contributed to our position as a leader among listed real estate funds in Switzerland.
“This stability, combined with responsible governance, has greatly contributed to our position as a leader among listed real estate funds in Switzerland.”
2. What is the current rental reserve potential of your portfolio?
The rental reserve potential of our portfolio is a key criterion in selecting properties. Market places it around 15%, but due to our active management we estimate it at 25%. This difference stems from our in-depth knowledge of assets and our proactive approach to optimizing rental revenues. We adjust rents to the market price, while focusing on improving housing quality to increase long-term profitability.
3. What investments are you planning for 2024-2025 in residential real estate?
In the coming years, we plan to invest around CHF 50 million in high-potential urban centers in French-speaking Switzerland, such as Lausanne, Geneva, and Fribourg. These areas offer a strong economic environment and sustained rental demand. By increasing the average size of our assets to CHF 13 million, we optimize portfolio management and maximize returns. We also remain committed to improving the energy efficiency of our properties to meet tenants’ and regulators’ expectations.
4. A new capital increase is underway. Does the market offer attractive opportunities?
The Swiss real estate market offers interesting opportunities, especially with the expected decrease in SNB interest rates and the return of institutional investors. After raising CHF 75 million and executing a CHF 13 million swap earlier this year, we are currently in a subscription period for a new capital increase of around CHF 57 million to seize opportunities in strategic cities. We have secured two significant acquisitions, demonstrating our ability to anticipate market movements while maintaining a prudent approach.
5. Which transformation are you most proud of?
I am particularly proud of the DSPF’s strategic transformation since 2021. We have repositioned the fund by emphasizing transparency, ethics, and operational excellence. Our commitment to energy-efficient renovation contributes to CO2 emissions reduction and improves our tenants’ quality of life while enhancing asset value. The elevation and energy renovation project in Lausanne and Vevey illustrates ou
