Innovate Your Real Asset Financing

Off-balance-sheet treatment: Securitization can allow insurers to move real estate exposure off their balance sheets, thus improving financial ratios such as leverage and solvency.

Reduced capital requirements: By transferring risks associated with directly holding real estate to investors via securitized products, institutions can lower and release the regulatory capital provisions, freeing up capital for other investments.

Increased liquidity: Securitization improves liquidity and capital efficiency by turning illiquid directly held real estate into liquid, tradable financial instruments, enabling insurers to quickly access cash when needed without the lengthy process of selling real estate.

Asset monetization: This enables institutions to release the capital tied up in low-yielding real estate, using it for more productive or higher-return investments.

Mitigates exposure: Securitization allows insurance companies to bundle real estate assets, transforming illiquid properties into liquid, tradable securities. This reduces concentration risk from holding a single or limited set of properties.

Balanced portfolio: By securitizing real estate, institutions can diversify their investment portfolio, offering protection against market downturns or sector-specific risks.

Solvency and regulatory benefits: Securitised products can help insurers meet regulatory requirements such as solvency or Swiss regulatory standards by ensuring compliance with liquidity and capital adequacy regulations.

Retention of asset management: Under SH Schweizer Hypotheken AG's securitisation model, the sellers can be retained as asset managers of the properties, representing a continuous and/or future income stream.

Right of first refusal/right of buy-back: As part of the transaction, the sellers can be granted a right of first refusal or right of buy-back. Secured by a land charge, these rights allow the institutions to repurchase the property in the future.