Advantages

Indirect property investment has the following advantages:

1. Shares / Shares in funds

  • General Remarks
    1. Investment with low levels of capital expenditure as well
    2. Investment diversification (shares, funds, bonds)
    3. No involvement in refinancing, facility management, real estate management and end-users (tenants, lessees etc.)
    4. Comparability / benchmarking
    5. Liquidity of participating interests » sale on the stock market
    6. Improved performance / higher yields (professional real estate management and facility management
    7. Performance monitoring by other investors, analysts and media
    8. Income stream
  • For property companies limited by shares (listed on the stock market)
    1. Property shares may be bought and sold on the stock market at any time
    2. Visibility through option to publish real estate indices on the SIX Swiss Exchange (SXI Real Estate Index) or Subindexes (SXI Real Estate Shares Subindex)
  • For shares in property funds
    1. Return option
    2. Investor protection though investment rules and supervision
    3. Property bond option
    4. Market making opportunities for trading in shares in property funds
    5. Visibility through option to publish real estate indices on the SIX Swiss Exchange (SXI Real Estate Index)

2. Companies

  • General Remarks
    1. Increase in plot size
    2. Professionalization of real estate management and administration
    3. Investment diversification (geographical, age of property, purpose of property etc.)
    4. Improved risk management
  • For property companies limited by shares
    1. Possibility of influencing corporate strategy
    2. No buy-back obligation (in contrast to property funds)
    3. Disinvestment
      1. Possibility of choosing between share deal and asset deal
      2. Exit strategy (option to be applied to the company or investment properties)
  • For property funds
    1. Portfolio transparency (Collective Investment Schemes Act [CISA] / Collective Investment Schemes Ordinance [CISO])
    2. Investment rules
    3. Pledge limits
    4. Valuation rules
    5. and so on
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