SBB puts real estate projects on hold
SBB has announced that it will suspend investments in real estate projects until their financing is secured. The reason is the tense financial situation due to the Corona crisis.
According to a statement from SBB, the investment cuts amount to around CHF 700 million for the years 2021 to 2025 based on the current planning status. Projects in Renens, Berne, Zurich, Horgen and Winterthur are directly affected. Over the next few months, around 30 other projects throughout Switzerland are to be gradually suspended. Ongoing project phases will be completed.
SBB further informs that projects with valid leases or other mandatory obligations will be realized as agreed, and projects under construction will also be completed. And suspended projects are to be resumed as soon as their financing is secured.
The background to the move is the "very tight" financial situation due to the Corona pandemic, SBB added. Last year, the short-term credit limit had to be increased by CHF 550 million to cover liquidity bottlenecks. (ah)
