Article published in Immoday, September 25th. Auf Deutsch hier: «TrustStone verfügt über ein attraktives Portfolio mit viel noch nicht ausgeschöpftem Potenzial»
For the past few weeks, the management of the unlisted fund TrustStone Real Estate SICAV, with total gross assets of CHF 126 million, has been taken over by Dominicé. The new manager has moved quickly: a capital increase of around CHF 28 million has already been completed, enabling the acquisition of two buildings that will increase the fund’s cash flow. More acquisitions are already in the pipeline. According to Diego Reyes, this takeover will not lead to any changes in the SICAV’s strategy, nor to a future merger with Dominicé Swiss Property Fund.
Why did Dominicé take over the management of TrustStone Real Estate SICAV?
For a long time, we wanted to expand. So, when TrustStone was presented to us, we carried out thorough due diligence—on all the key factors: real estate, financial and legal aspects. We also analyzed the portfolio’s outlook and sustainability. In the end, we concluded that this fund is not only highly complementary to what we already do, but also holds real potential for development that has yet to be fully realized.
… we concluded that this fund is not only highly complementary to what we already do, but also holds real potential for development that has yet to be fully realized.
How long does such a takeover process take?
From FINMA’s approval to the validation of transfers by the commercial register, a little over three months.
Wouldn’t it have been simpler to launch a new fund?
Today, it is very difficult to launch a new securitized real estate product. Investors have become cautious, and raising the first tens of millions of francs is challenging. Not to mention the heavy administrative and legal requirements of setting up a fund, including FINMA’s authorization.
How much does it cost to acquire a fund like TrustStone?
No comment. What I can say is that it’s a very complex calculation, taking into account the quality of the properties, the cash flow, and the number of investors.
Will you meet investors’ expectations?
We will leverage our experience in real estate fund management to ensure continuity in portfolio management while creating sustainable, long-term value for investors.
What convinced them to put their trust in Dominicé?
Without disclosing confidential information, I can say that several fund managers were approached. The final choice fell on Dominicé thanks to the track record of our Dominicé Swiss Property Fund, which has developed very successfully in recent years, and also due to our network of potential investors, many of whom already trust the Dominicé group.
You are currently responsible for Dominicé Swiss Property Fund. Will you also be in charge of TrustStone?
Yes. The management of TrustStone will not have a separate, dedicated team; it will be the same team that manages Dominicé Swiss Property Fund. However, we will be strengthening this team—we are currently recruiting new talent. In the end, seven full-time professionals will manage both funds.
Will the fund’s management company remain the same?
Yes, we are very satisfied with the services of Solutions & Funds.
Will you continue working with Patrimonium?
Of course. It’s essential for the transition to run smoothly, especially since Patrimonium initiated many projects relating to TrustStone’s properties—projects we will have to complete. We plan to work together for at least 12 months.
Will there eventually be a merger between Dominicé Swiss Property Fund and TrustStone Real Estate SICAV?
Not at all. First, some investors specifically want a non-listed fund valued at NAV. Second, the current strategies of the two funds are different, and we intend to maintain them.
How are these strategies different?
Both funds invest in the same geographic area, French-speaking Switzerland. However, Dominicé Swiss Property Fund focuses primarily on residential assets (+80%), whereas most of TrustStone’s investments are in mixed-use and commercial buildings (60% commercial and 40% mixed-use residential).
You mentioned TrustStone’s development potential. What does that look like?
TrustStone is a small fund, currently with 14 properties and gross assets of around CHF 141 million. But for the majority of these properties, there are highly attractive development projects. However, successfully executing all of them will require recurring cash flows and specialized expertise.
To generate additional cash flows, the fund will need to grow.
That’s our goal. This was also one of the key requirements from investors, which we met by completing a capital increase of nearly CHF 28 million. Thanks to our network, we were able to acquire two new properties, generating additional cash flow. These acquisitions also helped rebalance the portfolio. The entire process was completed very quickly and efficiently—in less than two months.
Do you have other properties in the pipeline?
Yes, including a major swap of around CHF 80 million. Not everything is finalized yet, so I can’t say more at this stage. In any case, we don’t want to rush anything. The next important milestone will be the publication of the half-year accounts at the end of November 2025, where the impact of our management will already be visible.
If everything goes according to plan, what will be the fund’s size in three years?
We aim to grow by CHF 50 million per year. So, in three years, if all goes well, we expect to reach nearly CHF 300 million.
So, today, the priority is to grow the fund?
It’s one of our priorities, along with developing the portfolio. But our main objective today is to increase the number of investors and to energize the secondary market. We are already seeing real interest from clients.
… our main objective today is to increase the number of investors and to energize the secondary market. We are already seeing real interest from clients.
Once the fund reaches CHF 300 million in NAV, will it be time to go public?
That’s not our objective today, but we’ll revisit the question once we reach CHF 300 million. In any case, at that stage, a listing would only make sense if there is a sufficiently large pool of investors to ensure true liquidity of the shares.
