Swiss Prime Site: Western Switzerland is an important market segment
The French-speaking Swiss market is of great interest to Swiss Prime Site, CEO René Zahnd confirmed at the Capital Markets Day, which the real estate company held in Geneva on Wednesday.
For Swiss Prime Site, the Lake Geneva basin - along with Zurich and Basel - represents an "extremely dynamic and important geographical market segment," the company says. Already today, around 24 percent, or CHF 2.6 billion, of the company's total portfolio of around eleven billion is located in western Switzerland. "The further development of Geneva also gives us the opportunity to play an active role in the future of the region's largest city," says CEO René Zahnd.
The company's development pipeline has a total volume of two billion, which also includes three projects in western Switzerland with investments of 650 million. The project pipeline of Immobilien-AG currently comprises 15 major projects. Six properties are currently under construction with a total investment of 800 million, an expected rental income of 45 million and a total leasable area of 157,000 sqm.
Nine further projects are to be built between 2019 and 2026. According to the company, the planned investment volume will amount to 900 million euros. A total of 136,000 square meters of office and commercial space will be realized. The projects under development are expected to generate rental income of 47 million. On average, Swiss Prime Site expects a net return (on cost) of five percent for the projects. In addition, the company has land and compression reserves worth 300 million.
For some time now, the company has been pushing its own project developments in order to be able to act as independently as possible from the transaction market, according to the company. "By means of our pipeline, we can actively influence rental growth ourselves and at the same time generate attractive capital gains through sales," says Peter Lehmann, CEO of Swiss Prime Site Immobilien.
From the Disposal of the "Weltpost Park" project and of parts of the "Espace Tourbillon According to Swiss Prime Site, a pre-tax profit of 100 million will be realized by completion. (ah)
