St.Gallen: Pension fund invests in multi-storey car park
The planned UG 25 parking garage on Unterer Graben in St.Gallen is being realized. The pension fund of the city of St.Gallen is the investor.
According to a report of the St.Galler Tagblatt according to construction work on the UG 25 parking garage is scheduled to start in the summer and be completed by the end of 2022. The current 210 parking spaces will be joined by 531 parking spaces on six underground levels.
Surprisingly, however, it is not Cityparking AG that is investing in the project, as previously suspected, but the city's pension fund. The parking garage is interesting because it allows the pension fund to further diversify its real estate portfolio, Managing Director René Menet told the newspaper. Above all, however, the investment offers a good return with an acceptable risk.
No details were given on the investment costs, but earlier estimates put the project at about CHF 60 million, reports the Daily Gazette go on.
The parking garage has been in the planning stages for years, but there were differences over the number of parking spaces: The developer, Senn Resources, demanded more public parking from the city to make the business plan work. In late 2018, the city relented: Several parking spaces elsewhere in the city will be replaced in UG 25. As a result, UG 25 will have about 740 parking spaces in the future. (ah)
