In mid-December the sale of our property in Vacallo has been finalized. Object purchased in 2013 for CHF 12.3Mio and resold for CHF 15Mio. This sale allows the Fund to generate an important profit of more than CHF 1Mio compared to the last value in the balance sheet and to liquidate an asset no longer strategic for the Fund, which had a constant and high vacancy rate due also to the micro-regional situation of Chiasso.
The proceeds of this sale were immediately reinvested for the purchase of an equivalent property in Locarno, in a residential area close to the city center and the lakefront. The building, built in the first half of the '70s, is composed of 50 apartments of different types (1.5 rooms up to 5.5 rooms) and 37 parking lots (indoor and outdoor).
The object, in addition of offering an excellent location, enjoys a good general state of maintenance and will ensure a gross annual income of approx. CHF 670'000 that at the purchase price of CHF 13.3Mio represent an excellent 5%.
The activities undertaken in recent months do not end with this transaction, we hope to be able to give you confirmation of other important news in the coming weeks.
Wishing you all a year full of satisfaction, our most sincere greetings.
Residentia Team