Swiss Prime Site: Capital Markets Day focusing on portfolio and project pipeline Mittwoch, 23. Oktober 2019 - 07:00
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.
If you have any questions, please contact:
Investor Relations, Markus Waeber
Tel. +41 58 317 17 64, markus.waeber@sps.swiss
Media Relations, Mladen Tomic
Tel. +41 58 317 17 42, mladen.tomic@sps.swiss
Link to Capital Markets Day presentation (PDF – in English only)
https://www.sps.swiss/en/media/presentations
Swiss Prime Site
Swiss Prime Site AG is the leading listed real estate company in Switzerland. Its high-quality real estate is worth over CHF 11 billion and consists of properties with good value retention in prime locations, which predominantly comprise office and retail floor space. Swiss Prime Site Immobilien AG invests in high quality buildings and land, which together with conversion and development of entire areas form the company’s core business. One of the real estate-related group companies is the leading premium department store in Switzerland, Jelmoli – The House of Brands, in Zurich, the most important property in the portfolio. Third-party shop-in-shop concepts and its own formats are managed there on 23 800 m2 of retail floor space. Wincasa is the biggest and most important integral real estate service provider in Switzerland and ideally complements Swiss Prime Site’s core business. Its innovative range of services cover the entire property life cycle. Assets under management amount to approximately CHF 70 billion. Tertianum, the leading Swiss service provider in the promising area of assisted living, further expands the Swiss Prime Site Group. Quality living with associated autonomy, individual services, safety, and care and support are the core focus of Tertianum and its more than 80 residential and care centres. In 2017, an asset manager focusing on the real estate sector was founded with Swiss Prime Site Solutions. The business develops tailor-made services and investment products for third-party clients.
Swiss Prime Site is distinguished by its experienced management team, high earnings continuity and outstanding risk-return profile. The company has been listed on the SIX Swiss Exchange since 2000 and has a market capitalisation of over CHF 7 billion.
SIX Swiss Exchange | Symbol SPSN | Securities number 803 838
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF SWISS PRIME SITE AG HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT FROM REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.
