Epic Suisse takes a new run at going public

Epic Suisse AG plans to raise CHF 200 million with primary shares in the IPO. According to the real estate company, founders and major shareholders Alrov Group (77.8%) and the Greenbaum family (22.2%) do not intend to sell any shares in the IPO. Epic intends to use the net proceeds from the IPO to fund ongoing development projects and future acquisitions. Bank financing and shareholder loans are also to be repaid.

Epic Suisse AG holds 25 properties with a market value of around CHF 1.5 billion, which generated net rental income of 58.6 million last year (2020: 54.6 million). Just under half of the properties are located in the Lake Geneva region (48% of the market value of the overall portfolio), with a further focus on the Zurich economic area (38% of the market value). Office properties predominate with a share of 44%, while retail properties account for just under 40%. At the end of 2021, properties in operation had a total leasable area of 322,939 sqm, and the actual vacancy rate was 7.6% (2020: 6.3%). Adjusted for strategically planned vacancies or absorption vacancies from new developments, the vacancy rate was 3.7% (2020: 4.4%).

In fiscal year 2021, Epic Suisse made a net profit of 77.5 million (2020: 34.4 million). Ebitda excluding property revaluation was 48.9 million (2020: 40.9 million) and Ebitda including revaluation reached 97.8 million (2020: 49.3 million).

In the fall of 2020, the real estate company had already planned to go public, but canceled the move at short notice "due to market conditions". Now the IPO is expected to take place in the coming months. Epic Suisse holds out the prospect of a dividend of CHF 3.00 per share for the year 2022. In subsequent years, at least 80% of the funds from operations (FFO or Funds from Operations) are to be distributed.

Swiss Finance & Property is acting as co-manager for the planned IPO. Credit Suisse and Zürcher Kantonalbank have been appointed as Joint Global Coordinators and Joint Bookrunners. (ah)