23 October 2019

Capital Markets Day focusing on portfolio and project pipeline

 

PRESS RELEASE

Olten, 23 October 2019

 

Capital Markets Day focusing on portfolio and project pipeline

  • Further good growth in both segments
  • Attractive construction and development projects worth CHF 2.0 billion
  • Higher revaluations in the 2nd half-year of 2019 and targets confirmed

Today’s Capital Markets Day of Swiss Prime Site in Zurich is focusing on the core business Real Estate and the successful management of the portfolio as well as the project pipeline. Market conditions for prime office and commercial real estate are intact. In particular, the rental market in the Zurich and Geneva regions, which are important to the company, is in a healthy and robust condition. Demand for high-quality space in the Zurich region, for example, is more positive than it has been since 2010.

 

Further good growth in both segments

In its core Real Estate business, Swiss Prime Site currently has a portfolio of CHF 11.5 billion. It expects to grow further in 2019. Within the portfolio, «office» currently makes up the lion’s share at 44%. This should continue to grow with the transformation of the sites Stücki Park (Basel) and JED (Schlieren), as well as YOND (Zurich). Group companies Jelmoli, Wincasa, Tertianum and Swiss Prime Site Solutions in the Services segment are also experiencing a dynamic development. With the opening of the Pallas Kliniken and the new «Beauty World», Jelmoli is expanding its range of lifestyle services. Wincasa is building on its new «streamnow» platform and thereby gradually bringing its integral real estate services business model into the digital age. Tertianum was able to further boost its network to over 80 locations through new openings and smaller acquisitions. Swiss Prime Site Solutions extended its asset management contract with the Swiss Prime Investment Foundation ahead of schedule until 2023.

 

Attractive construction and development projects worth CHF 2.0 billion

Swiss Prime Site’s project pipeline has an investment volume of CHF 2.0 billion (including CHF 400 million of reserves). The 15 projects are split equally into properties under construction and projects in development. These are expected to generate additional CHF 83 million in rental income by 2024. Swiss Prime Site sees great potential for the future in logistics properties in particular. Two such sites are currently under construction: Espace Tourbillon and West-Log. Growth in online trading will continue to fuel demand for urban-based distribution centres. The Company is also investing in promising properties with a high level of flexibility in terms of space (YOND Zurich, Alto Pont-Rouge Lancy) and climate-friendly as well as sustainable construction (JED «2226»).

 

Higher revaluations in 2nd half-year and confirmation of targets

Swiss Prime Site confirms that it will meet its financial targets for the financial year 2019. Thanks to its successful portfolio management, the Company also expects further significant revaluations in the second half-year of 2019, and these are likely to exceed amounts in the first half-year. Swiss Prime Site is confident that it will be able to complete the planned disposal of Group company Tertianum by mid-2020.

Contact

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