First-ranking mortgages on income-generating real estate as a stable income contributor: new investment group at the Patrimonium Investment Foundation
The Patrimonium Investment Foundation is launching a new investment group for Swiss pension institutions focused on first-ranking mortgages on income-generating real estate. The strategy aims to deliver stable income and is positioned as a complement to Swiss franc-denominated bonds as well as existing mortgage and real estate investments.
First-ranking mortgages on Swiss income-generating properties exhibit the characteristics of a stable income contributor from an investment perspective and qualify, under BVV 2, both as traditional receivables and as low-risk investments.
Swiss franc bonds under pressure as a source of income
The recurring periods of zero and low interest rates set by the Swiss National Bank are placing increasing pressure on Swiss pension institutions in their search for stable income. High-quality Swiss franc bonds now offer only limited return potential, while being more sensitive to rising interest rates and the resulting valuation corrections.
Direct real estate investments and investment foundations (ownership of income-generating properties) remain an important pillar in the asset allocation of many pension institutions. However, structural excess demand has led to declining acquisition yields, limiting the ability of this segment to meet the growing need for stable income.
Basel III is reshaping the Swiss mortgage market
With the Basel III framework in force since January 2025, the conditions in the Swiss mortgage market are changing noticeably. Higher capital requirements for banks are leading to more selective lending practices and, in general, lower loan-to-value ratios.
Attractive characteristics for pension institutions
Income-generating real estate represents an asset class already well known to pension institutions, whether through direct investments or investment foundations. Its purpose is to generate regular income rather than owner occupancy.
Investing in mortgages on income-generating properties offers several advantages for Swiss pension institutions:
Typically floating-rate, short-duration mortgages on such properties remain attractively priced across different interest rate environments and show resilience to valuation adjustments.
First-ranking mortgages on these assets therefore provide the characteristics of a stable income contributor and serve as a complement or partial substitute to Swiss franc bonds as well as existing mortgage and real estate investments.
New investment group “Swiss Mortgages”: a well-diversified and stable CHF income source
The new open-ended investment group is designed to meet the efficiency and due diligence requirements of Swiss pension institutions:
The new investment group will be launched upon reaching minimum capital commitments of CHF 100 million; initial commitments have already been secured.
Regulatory classification
The “Swiss Mortgages” investment group meets the requirements under BVV 2 and qualifies as:
Patrimonium as a partner
Since 2007, Patrimonium Asset Management has specialized in investments in Swiss income-generating real estate as well as direct lending secured by real assets, and manages over CHF 5 billion in assets (31.12.2025).
The firm covers all competencies along the real estate value chain and benefits from a nationwide network. Approximately 200 Swiss pension institutions are invested in its existing investment groups across residential real estate, healthcare real estate, and sustainable infrastructure.
Patrimonium Asset Management is a FINMA-authorized fund management company.
Contact
François Hutter
Media Relations
media@patrimonium.ch
058 787 00 08
Clement Jacquesson
Head of Real Estate Debt
clement.jacquesson@patrimonium.ch
058 787 00 81
Patrimonium Investment Foundation
Founded in 2009, the Patrimonium Investment Foundation is aimed at tax-exempt occupational pension institutions domiciled in Switzerland. It manages the real estate investment groups “Residential Properties Investment Group” and “Swiss Healthcare Properties Investment Group,” as well as the infrastructure investment group “Sustainable Infrastructure (evergreen) Investment Group,” with assets under management of over CHF 1.4 billion. Its investor base consists of approximately 200 Swiss pension funds.
Patrimonium Asset Management AG, a FINMA-authorized fund management company, has been appointed as asset manager. The foundation is a member of KGAST, ASIP (Swiss Pension Fund Association), and VIS (Swiss Real Estate Association).
Patrimonium Asset Management AG
Patrimonium Asset Management AG is a FINMA-authorized asset management company specializing in private markets. Patrimonium offers qualified investors investment opportunities across real estate, private credit, private equity, and infrastructure.
The company is distinguished by a sustainable investment approach and manages over CHF 5 billion in assets with a team of 70 professionals (as of 12.2025). www.patrimonium.ch