Swisscanto AST increases allocation in Zurich
The Swisscanto AST Real Estate Responsible Switzerland investment group expanded its portfolio in Zurich in the current 2023/24 financial year; at the same time, retail properties in Ticino and Neuchâtel and a large project development in Zurich were sold.
In August 2023, the investment group acquired the "Hardturmpark" development in Zurich's Escher-Wyss district in Zurich-West (117 apartments, commercial space on the ground floor) and "Am Eschenpark" in Neu-Oerlikon (94 rental apartments). According to Swisscanto AST, both properties meet high sustainability criteria (Minergie, district heating) and have rental potential. In addition, the investment group acquired the real estate portfolio of the Bally pension foundation in the city of Zurich as of March 2024 as part of a contribution in kind: It consists of two fully let residential properties (1 new building in Hirslanden, 1 older property in Höngg) with 34 apartments.
The additions to the portfolio in the Zurich residential segment with an effect on income enabled the sale of the Harsplen residential construction project in Zurich-Witikon at the beginning of April 2024 from an allocation perspective, the Board of Trustees announced. The Harsplen site and the rights to the existing project with around 370 planned apartments were sold.
In addition, the investment group sold the former Globus property at Via Largo F. Zorzi 4 in Locarno, including the associated parking units at Via delle Monache 8, to a local real estate developer at the end of January 2024. On 1.4.2024, the investment group sold the Maladière shopping center in Neuchâtel to the main user together with the co-owner (50% co-ownership share each). According to the information provided, both sales were carried out according to the "best owner" principle. On the acquisition side, the co-ownership share in the Bahnhofstrasse 71 property in Zurich was increased from 26% to 33% in the second half of 2023.
Residential and Zurich allocation increased
The investment group puts the estimated market value of all portfolio additions in the current financial year at around CHF 350 million (3.7% of real estate assets as at 30.6.23) and the sales proceeds generated at around CHF 315 million. "Overall, these transactions have further strengthened the portfolio quality of the investment group," writes the Board of Trustees, pointing out that all acquisitions are in good locations in Zurich and that the rental income comes primarily from the residential segment, which promises above-average income stability. On the other hand, the divestments have reduced the exposure in the more volatile retail sector and in Ticino. (bw)
