Real estate Switzerland
Within its Strategic Asset Allocations for the open and closed pension plans, PUBLICA also invests in directly held real estate in Switzerland.
The primary objectives of investments in Swiss real estate are to generate stable and sustainable income and to preserve or increase the value of the real estate. An additional positive effect is that directly held real estate helps to stabilise the investment portfolio, thanks to its negative correlation with other asset classes.
PUBLICA currently holds 75 properties in the principal sectors of residential, office and retail. Three projects are under construction, while four are in development. The majority of the properties are in good to very good locations, predominantly in city centres and easily accessible communes in conurbations, and along main traffic routes. The average value of the properties is approximately CHF 44 million.
The real estate portfolio is managed and monitored by the real estate specialists from PUBLICA’s Asset Management division. Operational tasks such as rentals and supervision of property maintenance are carried out by external management companies locally.
PUBLICA’s real estate management is essentially governed by the definition of sustainability formulated by the Brundtland Commission. Here as elsewhere, the aim of every action is to protect against or mitigate the economic consequences of old age, disability and death for insured members. All activities and decisions are geared to the responsible investment philosophy. The following sustainability principles have been defined:
- The goal of sustainability is to improve the quality of the portfolio/property in terms of its risk/return profile and ensure optimum economic viability.
- As part of institutionalised risk management, sustainability is a forward-looking, holistic approach to real estate that takes account of economics, ecology and society.
- Sustainability is a mindset and a continuous, long-term process of improvement.