Cham Group: Papieri-Areal goes into implementation
The Papieri site development in Cham is making progress, as the Cham Group announced at the presentation of its annual results. Construction work on the first stage has begun, and preparations are underway for the second stage.
According to the Cham Group, all permits for the first construction phase on the Papieri site have now become legally binding. Construction of the first stage has begun as planned. A total of 261 rental and owner-occupied apartments as well as around 9,000 sqm of service and commercial space will be built. From 2022, the newly constructed and converted buildings should gradually be ready for occupation.
A total of five buildings are being constructed in the first phase: a high-rise in the southern part of the site with condominiums and commercial space on the ground floor, the neighboring boiler house, the listed halls of the former paper machines along the Lorze River, which are being converted into loft apartments and studios, the new building opposite with rental apartments, and the Lokremise, which will house a showroom for the Papieri as well as other commercial space.
According to the Cham Group, the sale of the first residential units has "got off to an extremely successful start". Shortly after the start of the sales phase on 3 December 2019, 101 of a total of 105 units on offer had been reserved. When making reservations, the company deliberately gave preference to people who wanted to use the apartments or studios themselves. In the 2020 financial year, the focus will now be on finding users for the commercial spaces.
Second stage is being planned
Last year, the company also began planning the second stage. Two high-rise buildings with condominiums and rental apartments will be built, as well as a replacement building for the former silo building with office and commercial space. A study commission procedure has been completed and planning is currently underway with the selected architectural firms, according to Cham Group. The aim is to be able to submit the relevant building applications by the end of 2020.
The rental agreements with the Pavatex company for the storage space rented on the Papieri site expired at the end of November 2019, according to Gesellschafthaft. The building fabric on the vacated site will be partially deconstructed, and the outdoor areas and the remaining buildings are intended for interim use. The existing building lease contracts for the Pavatex site expire at the end of October 2020. In the medium term, this site is also to be put to a new use.
Portfolio value increases by 30%
Due to the progress made in the planning and realisation of site development, the total value of the Cham Group's real estate portfolio increased by 30% to 179.7 million. Of this amount, 7.4 million is attributable to investment properties and 147.4 million to development properties. Rental income remained stable at 2.2 million. The operating result before revaluation was negative at -0.4 million (previous year: -0.7 million). The operating result after revaluation was 30.3 million, net income 26.9 million.
The Board of Directors of Cham Group AG proposes to the Annual General Meeting on 6 May 2020 that an unchanged distribution of CHF 6.00 per share be paid out for the 2019 financial year. The members of the Board of Directors Philipp Buhofer (Chairman), Christoph Caviezel, Claude Ebnöther, Annelies Häcki Buhofer and Felix Thöni are standing for re-election for a further one-year term of office.
Due to the Corona crisis and the corresponding ordinance of the Federal Council, the General Meeting will have to take place without the physical presence of shareholders, Cham Group announces. (ah)
