Geneva-based real estate developer takes over Steiner Development AG

According to the information, M3 Immobilier has reached a comprehensive agreement with the administrator of Steiner AG on the takeover of Steiner Development AG. "With this merger, m3 and Steiner Development AG will become one of the leading independent real estate development companies in Switzerland," reads the press release. M3 Immobilier is one of the leading real estate development companies in French-speaking Switzerland. M3 Immobilier expects the merger of the two real estate developers to provide a "solid foundation for profitable growth throughout Switzerland". According to the information provided, with the spin-off of Steiner Development, the liabilities from the former TU/GU business will remain with the parent company Steiner AG. This will allow Steiner Development to reposition itself on a solid foundation - and this fresh start has made the company attractive for the merger with M3 Immobilier. "The integration of the best employees from both companies creates the opportunity to establish an efficient organization and secure a joint development pipeline in order to be able to grow profitably again," comments the M3 Group.

"Through this acquisition, we are combining the strengths of both companies and creating a solid basis for sustainable growth throughout Switzerland," explains Abdallah Chatila, Chairman of the Board of Directors of M3 Immobilier.

"Thanks to their focus on the real estate development business, M3 Immobilier and Steiner Development are ideal partners who also complement each other perfectly regionally: Thanks to Steiner Development, M3 Immobilier gains comprehensive access to the German-speaking Swiss market" adds Michael Schiltknecht, CEO Steiner Development. "I am very pleased to be working with the competent colleagues at Steiner Development again," says Jean Megow, CEO of m3 Immobilier. The companies plan to announce further information on the final structure and management in January 2025.

Probate court approves recovery transaction

The Indian HCC Group, the parent company of Steiner AG, is taking over the management and sole financial responsibility for the conclusion of the disputes in connection with disputed former major projects as a "further element of the multi-stage transaction", Steiner AG further announces.

The corresponding claims, obligations and proceedings have been transferred to the newly founded Steiner Eagle AG, and this new subsidiary has been sold to the HCC Group via an intermediate step. According to the press release, "the corresponding claims can be represented with the necessary expertise and the necessary emphasis vis-à-vis the respective debtors, while the balance sheet of Steiner AG will be relieved of this burden in future".

The lump-sum consideration of CHF 27 million agreed will benefit the debt restructuring proceedings of Steiner AG in the form of cash and assumption of debt. The consideration and the agreed conditions stand up to a third-party comparison. On December 19, 2024, the probate court approved this rescue transaction, with which Steiner Development AG can be led into a new future.

Creditors must expect significant bad debt losses

The transaction will allow Steiner AG to apply to the debt restructuring court for a definitive debt restructuring moratorium at the beginning of 2025, whereby a debt restructuring agreement with assignment of assets (liquidation settlement) is expected to be proposed to creditors. The now significantly simplified balance sheet structure of Steiner AG will enable an efficient liquidation of Steiner AG. However, due to Steiner AG's high level of liabilities, creditors are expected to incur significant bad debt losses.

"I would like to thank all those involved, in particular the M3 Group and HCC, for their decisive entrepreneurial contribution to making this rescue transaction possible," says attorney Balthasar Wicki, the head of the provisional administrator of Steiner AG (Wicki Partners AG, Zurich). "This brings us a big step closer to our goal of reaching a comprehensive agreement with Steiner AG's creditors."

"Thanks to their focus on the real estate development business, m3 and Steiner Development AG are ideal partners who also complement each other perfectly regionally: Thanks to Steiner Development AG, M3 gains comprehensive access to the German-speaking Swiss market" adds Michael Schiltknecht, CEO of Steiner AG. "We have a close working relationship with the CEO of M3, Jean Megow, as Jean previously worked for Steiner." (bw)