Cham: Work on the Papieri site is proceeding according to plan
Despite the Corona pandemic, construction work on the Papieri site in Cham (ZG) is progressing as planned, the developer Cham Group reports. Marketing is also proceeding successfully.
After the foundation stone was laid for the first construction phase at the beginning of June 2020, construction work on the Papieri site is progressing well, as Cham Group announced at the presentation of its half-year results.
In the first stage, the southernmost high-rise building with the Papieri Suites and a new building with rental apartments - including 30 affordable apartments - are being built. In addition, the listed paper machine halls on the Lorze will be converted into loft apartments and commercial premises, and the locomotive shed will be renovated. Work on the infrastructure is also progressing; underground garages 1 and 2 with around 650 parking spaces are also under construction.
According to Cham Group, the first construction stage will create a total of 105 condominiums and 160 rental apartments, as well as approximately 4,400 sqm of service and commercial space, which should be ready for occupancy in the second half of 2022. The total investment volume up to the end of 2022, including preliminary investments for further stages, will amount to a good CHF 250 million, the real estate company said. Of this, around 180 million will be spent on the buildings and around 70 million on project development, infrastructure and the energy system.
In parallel with the construction of the first stage of the project, the planning of the second stage is underway: the construction of two new high-rise residential buildings and a commercial replacement building for the former silo building are planned. The first building applications are to be submitted in the first half of 2021.
Condominiums reserved to 98%
Cham Group is also satisfied with the marketing of the condominium units: As of June 30, 2020, reservation agreements had been reached for 98% of the available condominiums; the contracts are to be notarized after the summer vacations. Marketing for the initial letting of the 160 apartments and commercial space is scheduled to start in the second half of 2021. Cham Group intends to evaluate a marketing partner by the beginning of next year.
From the sale of the condominium, the company expects proceeds of around 145 million by the end of 2022. Of this, around 20% will be paid as down payments in the course of the notarizations in the second half of 2020. With the leasing of the apartments and commercial space of the first construction phase, the target rental income will exceed the sum of 5.0 million per year from 2023.
Minus in the first half-year
Cham Group reports a consolidated result of -0.7 million for the first half of 2020 (previous year: 9.9 million). The reason for the minus is, on the one hand, that the income generated from rental decreased from 1.4 to 0.6 million in the reporting period, because the site was prepared for the construction phase. On the other hand, no income from revaluation has yet been generated, as this only takes place at the end of the year, according to the company.
The total value of the real estate portfolio increased by the investments made in the first half of the year from 11.6 million to 191.3 million. The equity of Cham Group amounts to 234.4 million, which corresponds to an equity ratio of over 89%. The financing of the construction projects is so far still entirely from own funds, the company says.
