The VALRES Suisse Romande Fonds’ investment strategy is based on a distribution of the risk categories of buildings on the market. In the search for a long-term sustainable return, the aim is to achieve an increase in NAVs (riskier approach – capital gain) and a balanced return (less risky approach). Therefore, the risk categories used are as follows:
a. CORE Properties
These properties have a good to excellent location, demonstrating a low rental risk and a low rate of actual depreciation. In terms of strategy, these properties enable the value of the portfolio to be secured, thus decreasing the overall risk. However, they have a low NAV growth potential.
b. VALUE ADDED Properties
These types of properties are located in built-up areas in the French-speaking part of Switzerland’s urban centres. They offer greater rental income’s valorization opportunities and generally require work, leading to value being added. There is an average potential for value enhancement. They are riskier than the CORE Properties but nevertheless remain an investment with a prudent risk/return profile.
c. OPPORTUNISTIC Properties
These properties are the most risky, but also have the greatest potential to increase in value. They are “distressed” properties, which often require reassignment or major work, or have problems with lessees, and therefore require specialised management to return the property to its former condition. Often acquired at a discount compared to the market price, these properties may allow large capital gains once renovated. As an independent fund management company, VALRES Fund Management SA is able to carry out these renovations using its own in-house resources.
PROJECTS UNDER DEVELOPMENT
In the medium term, the Fund will progressively develop its building projects so as to offer its investors the opportunity to participate in creating building project value.