PSP Swiss Property acquires three attractive commercial buildings in Geneva’s prime downtown location. Donnerstag, 24. September 2020 - 07:00
Press release
24 September 2020
PSP Swiss Property acquires three attractive commercial buildings in Geneva’s prime downtown location.
PSP Swiss Property purchases three directly adjacent commercial buildings in the CBD of Geneva for CHF 295 million (plus transaction costs), thus further optimises its real estate portfolio. The ebitda forecast for FY2020 has been improved.
Acquisition
The three directly adjacent commercial properties at Rue de la Confédération 2 (8,100 m2 rental space), Rue de la Corraterie 5/7 (5,400 m2) and Rue de la Cité 6 (2,100 m2) were acquired as of 22 September 2020. The commercial buildings are located in a very well frequented location between the banking district, the historic city center and the prestigious Rue du Rhône. The main tenant remains the seller UBS, which will lease back the branch office and the spaces required for its business operations.The remaining space on the ground floor is let to five smaller companies. Within the next two years, UBS will carry out structural works to divide up the areas in the properties. The acquisition is financed by debt at an average of 12 basis points.
Geneva area
PSP Swiss Property considers Geneva's real estate market to be positive in the medium to long term, even if the office market in peripheral areas is currently oversupplied and market uncertainties still exist in connection with the corona crisis. In particular at CBD locations, where the demand is already satisfactory, high quality surfaces should remain promising. The acquisition will further enhance the quality of the Geneva portfolio.
Adjusted ebitda forecast for FY 2020
The impact of the corona crisis on the property sector remains difficult to predict. It is also not yet possible to conclusively assess the impact on our business. It is also unknown whether the corona crisis will worsen in the future. In general, forecasts are therefore subject to a certain degree of uncertainty.
However, the purchase of these three properties has a direct positive impact on PSP Swiss Property's earnings. In addition, the visibility of the condominium sales in the "Residenza Parco Lago" development in Paradiso near Lugano has improved in the meantime. An increased ebitda excluding gains/losses on real estate investments of around CHF 270 million is now expected for the business year 2020 (so far: around CHF 260 million; 2019: CHF 256.1 million).
Geneva, Rue de la Confédération 2 (left) & Rue de la Corraterie 5/7 (right)
Further information
Giacomo Balzarini, CEO · Phone +41 (0)44 625 59 59 · Mobile +41 (0)79 207 32 40
Vasco Cecchini, CCO · Phone +41 (0)44 625 57 23 · Mobile +41 (0)79 650 84 32
Agenda
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PSP Swiss Property – leading Swiss real estate company
PSP Swiss Property owns a real estate portfolio of CHF 8.4 billion in Switzerland’s main economic areas; its market capitalisation amounts to CHF 5.1 billion. The 95 employees are based in Geneva, Olten, Zug and Zurich.
Since March 2000, PSP Swiss Property is listed on the SIX Swiss Exchange (symbol: PSPN, security number: 1829415, ISIN CH0018294154).
None of the information in this press release constitutes an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. None of the securities of the Company referred to in this press release have been or will be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the applicable securities laws of any state or other jurisdiction of the United States.
