Lucerne: Swiss Central City buys apartment building
The Swiss Central City Real Estate Fund has acquired an apartment property in the center of Lucerne for CHF 18.2 million.
The Nova Property Fund Management fund company has made an additional purchase for the Swiss Central City Real Estate Fund. According to a statement, it is a new apartment property in the center of Lucerne. The building comprises 56 individual apartments with 1 to 1.5 ½-rooms for long-term residential use, as well as smaller office and commercial spaces with a total rental area of around 1,390 sqm, Nova Property said.
The apartments and commercial space will be managed and rented directly by an operator, it adds. A triple-net lease agreement has been concluded with the company for a term of ten years, generating net rental income of CHF 0.63 million per year. This means that the Swiss Central City Real Estate Fund is only responsible for the maintenance of the roof and partition of the new building. Investments in the rental space and all ancillary costs would be borne by the operator.
The fund puts the total investment costs at around 18.2 million. The transfer of ownership of the property took place at the end of June 2020. (ah)
