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Publication

Direct access to Swiss investment foundations with contributions in kind

02.09.21

At a time when real estate investment foundations are difficult to access for new investors, contributions in kind offer a way to join them and an existing, homogeneous group of investors without reducing overall real estate allocation.

Contributions in kind offer several advantages for pension funds.

Advantages of contributions in kind

  • Immediate, direct access to tax-exempt Swiss investment foundations
  • Better diversification and higher liquidity
  • Transfer of the operational risk associated with direct real estate investments, and lower administrative and management expenses 


Types of contributions in kind

Tax considerations may play a role in selecting which the type of contribution-in-kind transaction is best for a pension fund. Two options are available:

  • Transfer of assets under the Swiss Merger Act (FusG)
  • Singular asset transfer

Patrimonium Investment Foundation as your partner for contributions in kind

Swiss pension funds are increasingly looking for professional, efficient and performing investment solutions.

Patrimonium Investment Foundation, founded in 2009, runs two investment groups “Swiss Residential Properties” and “Swiss Healthcare Properties“. Our Foundation is  an experienced, reliable partner for Swiss pension funds wishing to make contributions in kind. We offer:

  • Practical experience with over ten successfully implemented contribution-in-kind transactions
  • An in-house team that performs renovation work, refurbishments and energy-efficiency upgrades as well as other value-enhancing measures (such as to reduce vacancies, extend leases, convert properties etc.).
  • An active asset management approach with sustainability-oriented strategies

Which properties are suitable for a contribution in kind to one of Patrimonium Investment Foundation’s investment groups?

Investment group “Swiss Residential Properties

  • Residential properties and portfolios with moderate rent levels
  • Commercial properties with conversion potential
  • Existing properties, construction projects and development sites

Investment Group “Swiss Healthcare Properties ” 

  • Hospitals, clinics, senior residences, retirement and nursing homes, and healthcare centres
  • Long-term, indexed rental contracts
  • Existing properties, construction projects and development sites

How would we work together?

We support Swiss pension funds throughout the entire contribution-in-kind process.
If a pension fund is interested in joining the Patrimonium Investment Foundation, we will work through the following procedure:

  • Non-binding meeting: In a non-binding, confidential meeting, we will get to know the pensions fund’s needs and constraints, present our investment groups, and discuss the possible conditions of the investment. Contact us
  • Property for the contribution: The pension fund indicates which property or portfolio of properties will be used for the contribution in kind.
  • Binding offer: After performing an on-site visit of the property(ies) and reviewing the associated documents, we will be able to submit a binding offer
  • Detailed examination and contract: Once the offer is accepted, we clarify the legal and tax aspects and send a purchase contract for the pension fund to evaluate and sign

Contributions in kind are possible in two investment groups at the Patrimonium Investment Foundation:

Swiss Residential Properties (AuM: CHF 752 million)

  • Launched at the end of 2010, 94 investors
  • Residential real estate throughout Switzerland in regions with good demographic development potential
  • Small and medium-sized flats in the lower and medium rental price segment
  • New construction and development projects
  • Liquidity management through capital commitment procedures and active management of debt financing ratio
  • Income distribution with free reinvestment option

Swiss Healthcare Properties (AuM: CHF 339 million)

  • Launched August 2015, 79 investors
  • Investments in health centres, clinics, retirement and nursing homes, age-appropriate flats
  • Long-term leases over 20-30 years
  • New construction and development projects
  • Distribution of income with free reinvestment option

About Patrimonium Investment Foundation

Patrimonium Investment Foundation was established in 2009 and is aimed at tax-exempt pensions domiciled in Switzerland. It manages the investment groups “Swiss Residential Properties – Switzerland” and “Swiss Healthcare Properties” with assets of over one billion Swiss francs, and counts more than 150 Swiss pension funds among its investors. Patrimonium Asset Management AG, an asset manager of collective capital investments authorised by the Swiss Financial Market Supervisory Authority (FINMA), has been mandated as the managing company. Patrimonium Investment Foundation is a member of KGAST (Conference of Managers of Investment Foundations), ASIP (Swiss Pension Fund Association) and VIS (Swiss Real Estate Association).

Further information

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