Swiss Central City: Fund extends with most important single tenant
A business school on Gütschstrasse in the center of Lucerne is being extended over 20 years, thereby increasing the value of the fund from 5.1 to 8.4 years.
The Swiss Central City Real Estate Fund has renegotiated the existing rental agreement for the property at Gütschstrasse 2, 4, 6 in the center of Lucerne with the main tenant Business & Hotel Management School (B.H.M.S. AG) at an early stage and extended it for a further 20 years from January 1, 2026 at agreed target rental income of CHF 2.7 million p.a. The property contains 137 apartment apartments, which are rented out by B.H.M.S. as accommodation for its mainly international students. The floor space comprises a total of around 7,500 square meters. B.H.M.S. is the largest single tenant in the fund's portfolio, accounting for around 12% of the rental volume. The contract extension increases the value of the fixed-term leases in the portfolio from 5.1 to 8.4 years. "The Swiss Central City Real Estate Fund is thus securing long-term income early on with an important anchor tenant and will also achieve a material increase in income from 2026," writes the fund.
From 2026, an interior refurbishment of the apartments is planned, including new kitchen units, wet rooms, floor and wall coverings, seismic retrofitting and the renewal of the risers. The fund is managed by Nova Property Fund Management. (aw)
