Cham Group with consolidated net profit of 74.2 million
In 2022, Cham Group completed the first stage on the Papieri site. The total value of the real estate portfolio grew by 23.3% during the year, and the Group profit made an even bigger jump.
Net income increased from CHF 16.2 million to CHF 74.2 million. The annual distribution to investors is to double from the previous CHF 6.00 to CHF 12.00 per share.
The sale of the condominium units in the first high-rise building and the plot for the OYM boarding school, as well as the significant increase in the value of the development and investment properties, were responsible for the sharp rise in Group profit. The development and marketing of rental properties led to the appreciation of the portfolio. With a stable discount rate and due to investments of CHF 81.0 million and disposals of CHF 54.3 million, the value of the real estate portfolio increased by CHF 84.8 million to CHF 448.2 million.
After a good two years of construction activity, the first stage of the Papieri Quarter development in Cham has been completed. With completion, rental income, which was still at CHF 2.3 million at the end of 2022, will increase to CHF 7 million in 2023. The share of income from interim use is decreasing, and the target rental income of CHF 6.2 million from the investment properties is "solid and sustainable and will successively increase Cham Group's ability to distribute dividends," according to the company. The company generated a profit of CHF 23.3 million from the transfer of ownership of the condominium in the first-stage high-rise building and the sale of the OYM parcel. The cash return allows the completion of the next stages, including those on the neighboring Pavatex site, without raising further equity.
Condominiums sold in high-rise building I
Meanwhile, construction of the second phase is progressing. It comprises two high-rise residential buildings with around 100 apartments and 50 microapartments, a daycare center and additional office and commercial space on the first floors. A sports boarding school on a sold parcel of land completes the building ensemble. In high-rise I, all 61 condominium apartments have already been sold. The timber hybrid building will be occupied in 2025. The rental apartments in Building K will be marketed from the end of 2023, with occupancy planned for the second half of 2024.
Building application for third stage submitted
The building application for the third stage was submitted a few days ago. It comprises two long buildings with mixed commercial and residential use. A first preliminary contract has already been signed for the retail stores on the first floors.
Cham Group is developing eleven hectares in six stages on the site of the former paper mill in Cham. In total, a quarter with around 1,000 apartments and 1,000 jobs is to be created. (aw)
