Corporate Overview
Swiss Life Asset Managers1 has more than 165 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed across our real estate platform by principles such as
- value preservation
- the generation of consistent and sustainable performance
- responsible approach to risks & opportunities
- incorporation of environmental, social and governance aspects (ESG) across our investment process
Our objective is to achieve stable, risk-adjusted investment returns to support our clients to achieve their long-term investment objectives. Given the attractive risk- return profile of the asset class, Swiss Life has committed its balance sheet capital to real estate for more than 130 years. Swiss Life Asset Managers co-invests with many of its clients, ensuring a strong alignment of interests.
Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg, the UK, the Nordic countries and increasingly also internationally with more than 1,800 real estate professionals in 26 locations around Europe.
Alongside insurance assets for Swiss Life Group, assets under management total EUR 275.4 bn (as at 31 December 2023), with EUR 120.4 bn managed for third-party clients.
Between December 2022 and December 2023, our Real Estate Assets under Management and Administration increased to EUR 114.9 bn as of 31.12.2023.
This includes:
- · An increase to EUR 92.0 bn Real Estate under Management (+ EUR 0.3 bn) as well as
- · a planned strategic streamlining of Real Estate under Administration to EUR 22.9 bn (from EUR 21.6 bn as of June 2023).
Swiss Life Asset Managers employs over 2,200 FTE’s in Europe.
1 Brand name under which the asset management and real estate asset management companies of Swiss Life (in Switzerland, France, Germany, Luxembourg, UK, Italy, Norway, Denmark and Sweden) have been operating since 2012; however, Swiss Life Asset Managers itself does not constitute a separate legal entity.
Sector forecasts
INDUSTRIAL: The industrial and logistics sector remains fundamentally well-positioned to ongoing structural changes and hence in favour with investors. Some key trends supporting the sector include e-commerce, the rise of urban logistics, , near or re-shoring, and automation. As a result, tenant demand has remained resilient despite a weakening of the economy, and supply levels in many markets have not kept pace, creating scope for rental growth (albeit at a slower pace than in recent years). Significant yield compression over the past few years contributed to heightened vulnerability to rising interest and government bond rates, which caused capital values to decline in 2023. As the economy stabilizes, we expect transaction volumes and therefore pricing to recover somewhat, albeit asset specification and location will remain critical determinants of future performance.
OFFICE: The office sector continues to face several challenges, first relating to hybrid-working and secondly to tightening ESG regulations. As a result, both occupiers and investors remain focused on prime, Grade A space, which can provide flexible working spaces, and a high level of amenity, in well-connected, mixed-use locations. Meanwhile, supply shortages are expected to become more acute, particularly as sustainability requirements increase, which should underpin rental growth for this segment of the market. It is important to highlight that both rental and capital value growth will vary greatly, not just between building quality, but between locations too, so it will be critical to understand individual market dynamics when underwriting and appraising asset performance.
RESIDENTIAL: The residential market is less sensitive to economic cycles relative to other real estate sectors as occupier demand is driven by demographics as opposed to business growth. In fact, arguably recent economic developments (i.e., rising interest rates) are having a positive impact on demand for the sector as homeownership becomes less affordable, more people are having to remain in rented accommodation. Meanwhile, many European markets suffer from chronic housing shortages, which is expected to intensify in the context of elevated construction and financing costs. Favourable supply-demand dynamics are suggestive of rental growth over the medium-term. However, particular attention must be paid to the increase in regulations.
RETAIL: Weak consumer spending continue to weigh on the retail sector, particularly for discretionary goods tenants. Despite elevated financial pressures, pockets of opportunity can be found in convenience-led shops, food stores and retail parks, in particular those let on a long index-linked lease. The development of retail space (e.g. of showrooms or room for services such as hairdressers that cannot be bought online) is still ongoing. Conversions of pure retail assets into more mixed-used/flexible spaces might become an growing strategy. Performance may be supported by transformative technologies and artificial intelligence, which may boost efficiencies and productivity, and we will continue to monitor this development.
OTHERS:, In many markets tourism has rebounded close to or above pre-pandemic levels. Well-located hotels with an attractive offering for both business and leisure guests are expected to show greatest resilience to cost pressures and offer scope for performance. Hotel operators usually have flexibility over the rate in which they charge for their rooms, allowing an ability to pass on costs to their guests; this feature may allow scope for landlords to achieve rental uplifts through indexation. For the healthcare sector, strong demographic shifts across Europe (namely an ageing population) and the strategy to diversify portfolios into alternative sectors continue to support investor demand for healthcare assets. Despite robust transaction levels across Europe, the sector remains a small proportion of total investment as access to stock can be challenging.
Investment principles & strategy
The world and the economy are changing and demanding more from the built environment. This has manifested in a shift in the way occupiers use properties, including the lease terms they are seeking. Against this backdrop, we focus on ensuring that our clients’ portfolios reflect this ‘new world’ shaped by globalisation, digitalisation and societal change. For us, managing assets and risks means protecting wealth and increasing long-term earnings potential. Our investment management is based on understanding our clients’ risk and return expectations and accurately reflecting them in our approach to the market. Our main priority is to invest responsibly and act prudently with the assets entrusted to us.
Investment decisions are based on in-house research expertise and a rigorous investment process.
Therefore, we manage risk actively and perform risk controls systematically on an ongoing basis to monitor the individual portfolios. These controls enable our clients to review risks any time and compliance with the predefined investment process. The aim is to identify risks early in order to avoid or mitigate them, and to exploit opportunities for the benefit of our clients.
Strategic corporate development
Over the past years, Swiss Life Asset Managers has constantly grown its business activities organically and inorganically. We offer comprehensive services across the full real estate value chain with strong European roots and 26 offices in Europe with over 1,800 real estate professionals.
- Capabilities: Closed and open-ended real estate funds (listed and non-listed), investment foundations, dedicated mandates and separate accounts, fund of funds, JVs, club deals.
- Sectors: Office, retail, residential, healthcare, hotel/hospitality, student housing, logistics, light industrial and corporate real estate, life sciences.
- Broad range of investment strategies across the risk return spectrum with specific focus on well diversified pan-European core/core-plus or selective value add capabilities.
- Thematic and sector focused investment strategies such as European industrial & logistics, healthcare or hospitality.
Swiss Life Asset Managers also acts as a partner for co-investments in Europe.
Performance Verification
Swiss Life Asset Managers has a history of more than 130 years managing real estate and a proven track record across all sectors through different market cycles.
Compliance statement
This publication does not constitute an offer or a recommendation to buy or sell financial instruments, but is provided for information purposes only.
