Dominicé acquires a building with a large rental reserve
Dominicé has acquired a new building in the city center of Lausanne for the portfolio of its real estate fund. Located rue Dr César-Roux 28, between Ours and Bessières districts, the building is close to all the central amenities and public transportation.
The 1'471 m2 property consists of 36 small residential units (1.5 to 2.5 rooms), as well as 2 shops, 1 storage unit and 5 outdoor parking spaces. Current vacancy rate is close to zero due to high market demand for small centrally located apartments.
This predominantly residential building strengthens the presence of Dominicé's real estate portfolio in the major Swiss urban centers. Moreover, current rental status presents excellent opportunities for optimization through value creation, with the rental reserve estimated at 28%.
This CHF 11 million acquisition has a projected gross yield of 4.61%. It is the second acquisition this year. The first one, a residential building located Avenue du Gray 47 in Lausanne, was acquired for CHF 5.3 million at the end of June with a projected gross yield of 4.33%.
This latest transaction presents annother great opportunity for densification with a possibility to add extra floors. The strategic positioning of the building, as well as its potential for rental optimization and development make it a great addition to the portfolio. This acquisition will permit to further grow the fund and increase its annual dividend, in line with the fund’s active management strategy.
Dominicé's real estate fund invests in residential buildings in Switzerland and aims to produce positive risk-adjusted returns in Swiss Francs while preserving wealth against inflation. We look for rental properties that are affordable and located close to amenities and transportation. They include new buildings, buildings to be refurbished, as well as construction projects. The key to success in adding value is a rigorous selection process and Dominicé’s expertise in managing refurbishment and development projects.