SFP Investment Foundation Acquires CHF 1 Billion Real Estate Portfolio from COPRE in Landmark Deal

COPRE's CHF 1 Billion Real Estate Portfolio Transferred to SFP Investment Foundation

In a significant move within the Swiss pension sector, COPRE, one of Switzerland's largest joint pension foundations, has transferred a real estate portfolio valued at approximately CHF 1 billion to the SFP Investment Foundation. This transaction, completed in January 2026, marks one of the most substantial real estate deals in the industry recently. The portfolio includes around 70 predominantly residential properties across 16 cantons, and is managed by Swiss Finance & Property Group. This strategic transfer aims to leverage professional and sustainable investment strategies in response to strong market demand, ensuring an optimal return on investment for stakeholders.

Details of the CHF 1 Billion Deal with SFP

The real estate portfolio transferred by COPRE consists of approximately 70 properties, primarily residential, but also includes selected commercial assets. These properties are strategically located across 16 cantons in Switzerland, reflecting a diverse and balanced investment approach. The portfolio's initial equity is just under CHF 1 billion, underscoring the magnitude of this transaction in the Swiss pension fund market. According to SFP Investment Foundation, this move is part of their strategy to create an exclusive investment group for COPRE, enhancing the foundation's investment capabilities and ensuring long-term sustainable growth.

The Role of Baker McKenzie in the Transaction

Global law firm Baker McKenzie played a pivotal role in advising SFP Investment Foundation throughout the establishment of the new investment group for COPRE. Their expertise covered all legal and tax aspects, ensuring that the transaction adhered to Swiss regulations and optimized tax outcomes for both parties. This collaboration highlights the importance of legal oversight in large-scale financial transactions, particularly within the pension sector, where regulatory compliance and fiscal efficiency are paramount. As reported by Baker McKenzie, their guidance was instrumental in navigating the complexities of this deal, reinforcing the foundation's position in the market.

Swiss Pension Funds' Preference for Real Estate Investments

Swiss pension funds have historically favored real estate as a stable and reliable asset class. According to the CAIA, real estate investments can account for up to 30% of a pension fund's portfolio, reflecting their importance in asset allocation strategies. The preference for residential real estate, in particular, is driven by its potential for steady income and capital appreciation, making it an attractive choice for pension funds aiming to balance growth and risk. This strategic allocation not only secures stable returns but also aligns with the long-term investment horizons typical of pension funds.

Swiss pension funds have historically favored real estate as a stable and reliable asset class.

Implications for Swiss Real Estate Market

The transfer of COPRE's substantial real estate portfolio to SFP Investment Foundation is likely to have wider implications for the Swiss real estate market. By consolidating these assets under a single management entity, SFP can implement more efficient asset management strategies, potentially influencing market dynamics, including property valuations and rental yields. As the SFP Group manages over CHF 12.0 billion in assets, their actions are closely watched by investors, indicating that this move could set trends in investment and asset management practices across the sector.

Future Prospects for Swiss Pension Sector

Looking ahead, the successful transfer and management of this real estate portfolio may set a precedent for similar deals within the Swiss pension sector. As pension funds continue to seek sustainable and profitable investment opportunities, the professionalization and consolidation of real estate assets could become more prevalent. This trend aligns with the broader shift towards more sophisticated asset management strategies in the face of evolving market conditions and regulatory environments. According to RealEstateAbroad.com analysis, such transactions are likely to stimulate further innovations in investment approaches, benefiting both pension funds and their beneficiaries.