Realstone Group buys in Basel

Lausanne-based Realstone SA says it has acquired the two residential buildings at Luzernerring 91-93 in Basel's St. Johann district for the Realstone Swiss Property (RSP) fund. The buildings are reportedly located on a roughly 1,500-square-meter site near the St. Johann train station, Kannenfeld Park and several stores. The buildings, which date from 1952/53, are in good condition and have a total of eight apartments, 122 sqm of office space and a storage room, it said. No special investments are planned in the coming years, it says.

Currently, the properties, which Realstone acquired from a private seller for CHF 7.2 million, generated gross rental income of CHF 261,000 per year. The transfer of ownership was retroactive to July 1, 2019, he said. With a current yield of 3.6 percent on prime costs, the properties have "a considerable construction reserve" that can be further increased from 2022 following a planned upzoning, the fund management says. Up to 26 apartments with 2.5-3.5 rooms could be realized in the future - according to a feasibility study, even up to 34 apartments could be built after the rezoning. Depending on the scenario, there is thus a "substantial value creation potential". (bw)