Swiss Prime Site launches investment foundation
Swiss Prime Site AG has presented its newly established Swiss Prime Investment Foundation (SPA). At the same time, it presented the new investment group "SPA Real Estate Switzerland", whose investment focus is on residential real estate, supplemented by selected commercial properties and development projects.
"The investment foundation is aimed at Swiss pension funds that want to invest in a high-quality and broadly diversified real estate portfolio"
Swiss Prime Site CEO Markus Graf
In a one-off transaction, Swiss Prime Site is selling a real estate package worth around CHF 425 million to the investment foundation. The expected transaction profit for Swiss Prime Site after taxes amounts to approximately CHF 20 to 25 million. The total of seven properties in the package are located in Zurich, Geneva (2), Lucerne, St. Gallen, Bellinzona and Zuchwil. "The investment foundation is aimed at Swiss pension funds that want to invest in a high-quality and broadly diversified real estate portfolio," said Swiss Prime Site CEO Markus Graf at the roadshow kick-off yesterday (Thursday) in Zurich's Prime Tower.
As of mid-2016, a portfolio volume of CHF 550 million is targeted for the investment group. The change of leadership in the Group Management of Swiss Prime Site, which was already announced in mid-April, will be implemented as of January 1, 2016. CEO-designate René Zahnd will take over from Markus Graf, who will then focus on his duties as Chairman of the Foundation.
The SPA, with its registered office in Olten, is a foundation within the meaning of ZGB Art. 80 et seq. and BVG Art. 53 g et seq. and is subject to the supervision of the Higher Supervisory Commission for Occupational Pension Plans (OAK BV). The now launched investment group "SPA Real Estate Switzerland" invests directly in real estate throughout Switzerland. The investment focus is on residential real estate (target size/share of total portfolio: approx. 60 percent), with supplementary investments in commercial real estate and development projects.
The target rent in the first fiscal year is CHF 21 million. "The long-term investment target return of the real estate investment group is expected to be 3.0 to 4.0 percent," Graf explained. JLL is acting as the valuation expert for the investment group. Wincasa is the manager of the real estate, and the initial issue is accompanied by the private bank Notenstein as custodian bank.
At the same time, Swiss Prime Site AG announced its intention to take over Seniocare by acquiring 100 percent of its share capital, thereby strengthening its "Living and Housing in Old Age" division. More on this in the following News. (mr)
