Cham Group keeps dividend constant
In 2023, the completed first stage on the Papieri site contributed fully to the annual result for the first time. Rental income increased, but consolidated profit fell due to devaluations.
The Cham Group is "very confident about the future", as the company announced in connection with its annual results. In 2023, the first full year of operation since completion of the first construction phase on the Papieri site, rental income increased from CHF 2.3 million to CHF 7.4 million. Net income from the sale of promotional properties fell slightly year-on-year from CHF 19.6 million to CHF 18.7 million. At CHF 21.2 million, the operating result before revaluation was roughly on a par with the previous year. The total value of the real estate portfolio also remained practically stable at CHF 444 million (previous year: CHF 448 million). "The additions from the scheduled investments in development activities were offset by disposals due to the transfer of ownership of condominium units and a minimal valuation adjustment (-1.3%) due to the increased discount rate," the company writes in a press release. However, the aforementioned correction led to a fall in consolidated profit from CHF 74.2 million to CHF 15.6 million. The Board of Directors is proposing an unchanged dividend of CHF 12.00 per share to the Annual General Meeting.
Construction work is progressing
Construction continued apace on the Papieri site in 2023. The second stage of development comprises an investment volume of around CHF 95 million and, in addition to the OYM boarding school, which will open its doors on a sold plot in August 2024, and high-rise building I, 50 micro-apartments and 36 rental apartments will also be built in high-rise building K. The completion of this construction project in the fall of this year will increase Cham Group's target rental income by 2.4 million, while the sale of the 61 condominium units in the wooden hybrid high-rise is expected to make a substantial contribution to the promotional result in the following year. The high-rise will be ready for occupancy in spring 2025.
Migros rents in stage 3
The projects in the third stage, with investments of around CHF 80 million, are also making "good progress" according to Cham Group. The 63 residential units and 12,500 square meters of office, retail and commercial space are scheduled for completion in mid-2026 and are expected to increase Cham Group's target rental income base by CHF 4.3 million. The retailer Migros will occupy a large part of the first floor in one of the two buildings. "Negotiations are underway with other interested parties," it says. Marketing of the office space, which is characterized by a particularly high degree of flexibility of use, will be launched in spring 2024.
The fourth stage of the Papieri development is also taking shape. Two high-rise residential buildings, each with around 7,000 square meters of living space, are being planned, the design of which has been refined as part of an architectural competition. The jury is due to select the planning teams for further work in spring 2024.
Rentals in preparation
The site's boiler house, for which a planning application has been submitted, is to be used as a restaurant from 2026. Contact has been made with an experienced operator. "Positive contacts have also been made with interested parties for the approximately 4,000 m2 of office space that will be created in the Durolux building and the transformer building," writes the Cham Group. (aw)
