Swiss Prime Site profits from robust transaction and rental markets in 2023
July 17, 2023 at 06:03 am
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Swiss Prime Site AG
/ Key word(s): Real Estate
Swiss Prime Site profits from robust transaction and rental markets in 2023
17.07.2023 / 07:00 CET/CEST
PRESS RELEASE
Zug, 17 July 2023
Property sales of CHF 148 million and with around 10% gain over latest appraisals
Further reduction in vacancies to record low of 4.1%
Property sales of CHF 148 million with around 10% gain over latest appraisals
With its sale of a senior residential facility in Berlingen (canton of Thurgau) to Warteck Invest Group last week, Swiss Prime Site has now sold ten properties totalling CHF 148 million since the start of the year. With more than CHF 40 million, the Berlingen transaction was the most significant one. Other sales included six retail properties in Meryin, Conthey, Frick, Sursee, Frauenfeld and Wil, and a smaller owner-occupied property in Wabern near Bern as well as a mixed-use site in Oberbüren. A development plot in Wangen near Olten with building authorisation for a residential project was also sold. Without exception, all properties no longer fitted optimally into Swiss Prime Site's focused real estate portfolio in terms of location and type of use. The proceeds from the transactions are reinvested in current development projects. Overall, the average sales price was around 10% above the last valuation of the properties as determined by external appraisers (as at the end of 2022). René Zahnd, CEO Swiss Prime Site, says: «We are very pleased with the implementation of our capital recycling strategy, which allows us to successfully finance our project pipeline ourselves. Despite challenging market conditions, we were able to complete the planned transactions and achieve disposal gains on par with the previous years. This is a clear reflection of the quality and enduring value of our properties.»
Further reduction in vacancies to record low of 4.1%
In the first six months of 2023, Swiss Prime Site achieved major successes in its annual rental agreement renewals, both in its existing portfolio and in upcoming new leases within the development pipeline. The overall result was a further reduction in vacancies to 4.1% (after 4.3% at the end of 2022). Trends in overall economy and the associated demand for commercial spaces were consistently positive. The successful rental agreements relate not only to the portfolio of existing properties, but also to projects that will be completed in 2023 or 2024. René Zahnd, CEO Swiss Prime Site, adds: «The once again lower vacancy rate shows the high quality of our portfolio in terms of location and fit-out. We have also observed that, the broad diversity of types of use in our properties and the portfolio in general is a strong stabilising factor. While office space is our main type of use, retail, infrastructure and hospitality lettings also contributed to this pleasing result.»
Swiss Prime Site AG is a Switzerland-based real estate investment company. The Companyâs activities are structured into three segments: Real Estate, Retail and Gastronomy, and Assisted Living. The Real Estate segment focuses primarily on properties with office and retail floor space situated in prime locations. In addition, through its subsidiary Wincasa AG, the Company is involved in the provision of real estate services. The Retail and Gastronomy segment consists of primarily Jelmoli - The House of Brands department store and Clouds Restaurant in Prime Tower, Zurich. The Assisted Living segment comprises senior residences and geriatric care facilities provided by the subsidiary Tertianum Group.