PWG Foundation expands portfolio
The PWG Foundation has presented its results for the 2016 financial year. Five properties were acquired in the reporting period.
According to the Foundation for the Preservation of Affordable Housing and Commercial Space in the City of Zurich PWG, five properties were acquired in 2016 for just under CHF 30 million. Recently, the non-profit foundation bought another property, so that it now holds 139 properties with more than 1,600 apartments and 302 commercial spaces in its portfolio. "In all cases, we won the bid because we didn't give notice to residents and didn't raise rents," says Kornel Ringli, who is responsible for acquisitions at PWG.
The PWG Foundation is also otherwise satisfied with the last business year. Its own funds increased by CHF 6.1 million and now amount to slightly more than three times the founding capital of 1990, as can be seen from the just published annual report. The non-profit organization invests its entire incremental capital in the acquisition of new properties and in construction projects. Currently, five projects are underway for new replacement housing with a total of 137 affordable apartments. Three total property renewals were also completed last year.
One drop of bitterness: PWG is not immune to the market situation for commercial space. "For some time now, leasing has been more difficult," says Andreas Schmuki, Head of Property Management. Despite favorable rents, commercial space is finding buyers less quickly than in previous years in view of online trade, shopping tourism and the strength of the Swiss franc.
