In an increasingly challenging financing environment, in which traditional banks are becoming significantly more restrictive in their lending practices, alternative forms of financing are gaining in relevance.
Our fund offers a solid and sustainable solution for precisely this market situation: we finance selected projects in Switzerland through subordinated loans. A conservative loan-to-value (LTV) ratio of maximum 80% is applied, thereby limiting the risk. The loans are secured by mortgage notes. The investment focus is on high-yield real estate investments, project developments and high-quality building land. We select our financing partners carefully – only experienced construction companies or real estate development companies with an established track record and comprehensive expertise are considered for cooperation.
Our goal: to create substantial added value for project developers, investors and the Swiss real estate market.
Target return between 6.0% and 8.0% p.a. – secured by mortgage bonds on properties in economically strong locations.
PRED invests in subordinated mortgages on Swiss real estate with a maximum loan-to-value ratio of 90% at the individual project level and 80% at the portfolio level.
Financing of building land, project developments and investment properties.
Private debt is a growing asset class with great potential in Switzerland. It refers to debt capital that is mainly provided by investors outside the banking sector through private financing agreements.
PRED enables investors to invest in risk-optimised financing within the real estate asset class, with higher returns compared to traditional real estate investments. The need for alternative forms of financing is growing due to increasing regulations such as Basel III, which are making it increasingly difficult for banks to grant loans. In contrast, investors are looking for alternative investment opportunities in the low interest rate environment in order to achieve their return targets. PRED gives qualified investors access to private debt while supporting companies in Switzerland in financing their real estate projects. This creates a win-win situation – for investors who are looking for predictable returns and for developers who are counting on reliable investors.
