Swiss Prime Site takes over Fundamenta

Swiss Prime Site has signed an agreement to acquire Fundamenta Group (Schweiz) AG and Fundamenta Group Deutschland AG. Fundamenta, founded in 2006, manages real estate assets of CHF 4.2 billion in various investment vehicles; its approximately 2,000 investors include institutional investors as well as wealthy private clients and family offices.

"Fundamenta is a perfect fit for us," says René Zahnd, CEO of Swiss Prime Site. "We are thus expanding and deepening our investor base, broadening our product offering, particularly in the residential sector, and can now also offer our Swiss clients direct access to the German real estate market, which we see as an attractive addition to Swiss investments in the future." David Garcia, founder and member of the Board of Directors of Fundamenta Group, says he is "very proud" to hand over the real estate division to Swiss Prime Site.

75 percent of the purchase price is paid in cash

Swiss Prime Site is acquiring Fundamenta (Schweiz) AG and Fundamenta Deutschland AG from the previous shareholders, namely the Garcia and Marxer families, Luzerner Kantonalbank and the management. According to Swiss Prime Site, the acquisition will be made for 25% from shares of Swiss Prime Site's authorized capital and for 75% in cash from freely available funds, with the aim of maintaining the financing ratio of the real estate portfolio (LTV) below 40%. The parties have agreed not to disclose the sale price.

Following the transaction, Swiss Prime Site Solutions will manage a real estate portfolio of CHF 13 billion, making it "by far the largest independent real estate asset manager in Switzerland". Another new feature is that Swiss Prime Site Solutions will also be able to offer clients direct access to the German real estate market, according to a statement from Swiss Prime Site.

FFO I to increase by 20 centimes per share

Pro forma, the combined portfolio consisted of 63% residential properties and 37% commercial properties; it generated fee-based income totaling CHF 73 million in 2023. Following the integration and the associated realization of expected revenue and cost synergies, Swiss Prime Site anticipates an increase in consolidated FFO I per share of around 20 centimes as a result of the acquisition, part of which will already accrue in 2024.

The transaction is expected to close in the second quarter; no further approvals are required. All rights to the Fundamenta name will be transferred to Swiss Prime Site. The asset manager Belvédère Asset Management will remain in the ownership of the existing shareholders and will continue to operate unchanged; Swiss Prime Site Solutions will be mandated for real estate services in the future, Swiss Prime Site announced. The approximately 60 employees of Fundamenta at the Zug and Munich locations will be taken over in full by Swiss Prime Site. (ah)