Swiss Central City sells real estate worth over CHF 40 million
The real estate fund intends to sell a total of nine properties in Basel and St. Gallen. The fund management company has therefore announced that a capital loss will be incurred in the 2023 financial year.
The Swiss Central City Real Estate Fund would like to optimize its real estate portfolio and is therefore considering divestments. According to the fund management company, nine "smaller, mostly investment-intensive" properties in Basel and St. Gallen with a total volume of CFHF 43.3 million are to be sold. The properties in question are Aepplistrasse 4, Altmannweg 1, 3, Burgstrasse 134, Schlösslistrasse 13, 15 and Zürcherstrassse 55, 57 in St. Gallen. In Basel, the fund is divesting the properties at Haltingerstrasse 63 and Haltingerstrasse 102 as well as Hammerstrasse 98 and Sundgauerstrasse 11, 13.
The divestment of all nine properties earmarked for sale will lead to realized capital losses of CHF 9.8 million in the 2023 financial statements and CHF 3.8 million in the 2024 financial statements, provided the transfers of ownership take place as planned, explains the fund management company. The contracts have already been notarized. Ownership of six properties is to be transferred in December, two properties in January 2024 and one property by the end of the second quarter of 2024 at the latest.
According to the fund management company, the inflow of funds is expected to reduce Swiss Central City's debt financing ratio to between EUR 281TP3k and 291TP3k by the end of 2023. In addition, the sales will secure liquidity requirements for renovation and refurbishment projects and reduce administrative expenses in the real estate portfolio.
The Swiss Central City Real Estate Fund will publish its full annual results on March 15, 2024. (ah)
