PSP Swiss Property buys in Geneva
PSP Swiss Property has bought three adjoining commercial buildings in a prime downtown location in Geneva from UBS. The real estate company estimates the purchase price, excluding transaction costs, at CHF 295 million.
According to PSP Swiss Property, the properties in question are the commercial buildings at Rue de la Confédération 2 (8,100 sqm of rental space), Rue de la Corraterie 5/7 (5,400 sqm) and Rue de la Cité 6 (2,100 sqm), which were acquired from UBS on September 22, 2020. The properties are located in a very well-trafficked location between the banking district, the old town and the prestigious Rue du Rhôhe, the real estate company said.
The main tenant remains the seller UBS; the bank will lease back the branch and the office space required for its operation. The remaining space on the first floor is leased to five smaller companies. Within the next two years, UBS intends to carry out construction measures to divide up the space in the properties.
According to PSP Swiss Property's press release, Geneva's real estate market is positive in the medium to long term, even though the office market in peripheral locations is currently oversupplied and market uncertainties remain in connection with the Corona crisis. In CBD locations, where demand is already satisfactory, high-quality space should remain promising.
The purchase of the properties will have an immediate positive impact on earnings, PSP Swiss Property added. In addition, the visibility of the sales of freehold apartments in the Residenza Parco Lago development in Paradiso near Lugano has increased in the meantime. For the 2020 financial year, the company therefore expects a higher Ebitda excluding gains/losses on real estate investments of around 270 million. Previously, around 260 million had been forecast. In 2019, Ebitda was 256.1 million. (ah)
