Cham Group plans stock market withdrawal

Cham Group intends to discontinue its listing on the SIX Swiss Exchange and trade the company's shares over the counter in the future via the trading platform of Zürcher Kantonalbank (eKMU-X), the company says.

The switch to the over-the-counter trading segment is to be completed on December 19, 2019. In order to allow shareholders, who may be invested exclusively in listed shares, to exit, a buyback program is planned. Up to 5% of the outstanding shares will be bought back at a price of CHF 440 per share. The offer period for the buyback starts on August 16 and will last four weeks.

Low trading volume, high effort

The company cites the low trading volume of SIX-listed shares and the increasing regulatory requirements for maintaining listing as the main reasons for the change. As the company has a comparatively low market capitalization, this results in disproportionate costs and a disproportionate effort, according to Cham Group. The last trading day for Cham Group shares on the SIX Swiss Exchange will be December 18.

It is highly unlikely that any new equity will be required in the next decade, the Cham Group added. The equity for the realization of the Papieri project, including the development of the Pavatex site, is available. There is also sufficient access to outside capital.

First building applications on the Papieri site have been submitted

Meanwhile, Cham Group announces that building applications for the first construction phase on the Papieri site have now been submitted and demolition work has already begun. Four buildings are planned - the former halls of paper machines 1 to 4, the directly adjacent row-shaped new building with rental apartments, the southern high-rise with condominiums, and the neighboring boiler house.

A total of around 240 rental and owner-occupied apartments will be built as part of the first stage, which together with around 9,000 square meters of service and commercial space are expected to be ready for successive occupation in 2022. The investment volume for the first stage amounts to around 180 million.

In the second half of the year, two further building applications are planned for the renovation and conversion of the listed building along the Lorze and the adjoining new building with almost 170 rental apartments.

Significant increase in earnings

Cham Group generated operating income of 1.5 million in the first half of 2019, which is 37% more than in the same period of the previous year. According to the company, the increase is attributable to higher rental income of 1.4 million (prior-year period: 1.0 million), in particular due to the building lease interest for the Pavatex site adjacent to the Papieri site, which was acquired in September 2018. Other operating income amounted to 0.2 million (prior-year period: 0.1 million).

As of the valuation date of June 30, 2019, the value of the real estate portfolio has increased by 15.0 million, the real estate company further announces. The main reasons were operational progress and a market-related reduction in the discount rate. This was offset by a significant revaluation of 45.5 million in the first half of 2018 after the development plan for the Papieri site became legally binding. The total value of the real estate portfolio amounted to 153.3 million. Cham Group's equity of 238.9 million corresponds to an equity ratio of 92%.

Christoph Caviezel new member of the Board of Directors

At the Annual General Meeting on April 30, Christoph Caviezel was elected as a new member of the Board of Directors of Cham Group. He was CEO of Mobimo for many years until the beginning of April, before which he headed the Intershop real estate group. (ah)