Seraina Investment Foundation doubles its overall success
The investment foundation, which specializes in project development, reported a return on investment of 6.6% in its main investment group for 2025. This result was driven primarily by increases in asset values due to project progress and lower interest rates.
In fiscal year 2025, the Seraina Investment Foundation more than doubled total income in the Swiss Development Residential (SDR) investment group from CHF 37.7 million to CHF 84.4 million. In the SIF Living ESG portfolio, it rose from CHF 3.2 million to CHF 7.9 million. Across both investment groups, net rental income reached CHF 21.07 million, an increase of just under 10%. However, revenue trends in the two portfolios moved in opposite directions.
In the SIF Living ESG investment group, which holds near-new existing properties, net rental income rose by 89% to CHF 4.37 million—largely due to a full year’s income from properties acquired in the previous year. The rental vacancy rate fell from 3.88% to 1.89%. In SDR, on the other hand, which invests in development projects and generates rent only from temporary uses and completed buildings, net rental income fell by 13% to CHF 16.69 million (previous year: CHF 19.19 million). At the same time, the rent loss ratio rose from 13.19% to 19.37%. However, both figures are of limited significance for development properties, as rental income is not the primary source of revenue in this context.
Appreciation as a driver of returns
The SDR’s investment return was driven primarily by unrealized changes in value: these amounted to CHF 83.4 million (previous year: CHF 34.5 million) and, according to the annual report, reflect project progress, declining interest rates, and adjusted discount rates. After deducting deferred taxes, CHF 76.3 million remained (previous year: CHF 32.0 million). The realized net income in the SDR was CHF 2.8 million, following a loss of CHF 1.2 million in the prior year. Lower mortgage interest rates, among other factors, contributed to this improvement: they fell from CHF 5.0 million to CHF 3.5 million. Valuations in the SIF Living ESG investment group also rose by CHF 4.2 million (previous year: CHF 1.3 million). Net operating income here amounted to CHF 4.5 million (previous year: CHF 1.9 million).
The portfolio value of the SDR increased to CHF 1.62 billion (previous year: CHF 1.48 billion), while that of SIF Living ESG rose to CHF 133.2 million (previous year: CHF 125.4 million). The investment foundation’s total net assets reached CHF 1.45 billion. The leverage ratio for SDR fell from 23.18% to 17.99%.
Six new projects
During the reporting year, the investment foundation acquired six new projects in Zurich, Zollikon (ZH), and Langnau am Albis (ZH). The SDR portfolio now comprises 46 projects, of which 26 are in development, seven are under construction, and seven are in the land acquisition phase. In Vitznau (LU), 18 condominiums in the “Südsicht” project were completed and mostly handed over. The building permit application was submitted for the planned high-rise on Hohlstrasse in Zurich with 168 rental apartments; construction is scheduled to begin in early 2028. The “Aeschenplatz” project in Basel, at the former UBS headquarters, was completely converted from a mixed-use development with partial condominium ownership to rental apartments. In Geneva, the “Florissant” project received a final building permit. Construction began on three developments in Niederlenz (AG), Zurich, and Oetwil am See (ZH). New projects will launch in 2026 with Alpenda in Zollikofen (BE) and Swissroc in Gland (VD).
In December, the SIF Living ESG investment group acquired Building D of the “Flore & Sens” project in Estavayer-le-Lac (FR) from the SDR investment group for CHF 3.656 million. The SIF Living portfolio now comprises seven existing properties.
The investment foundation raised approximately CHF 156 million in capital commitments across four offerings; eleven new investors joined, bringing the total number of investors to 85 pension funds. The SIF Focus investment group was dissolved as of September 30 and transferred to the SDR. (aw)