Stories

«We’re feeling the synergy between the two segments even more.»

2023 proved to be one of the most challenging years in the real estate sector in a long time – rising interest rates, far fewer transactions, and valuation corrections were just some of the headline issues. In spite of this, Swiss Prime Site ended the year with a strong operational result. René Zahnd, Swiss Prime Site CEO, looks back on the financial year.

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Decarbonisation, net zero, buildings as power plants – making the reduction pathway a reality

Innovation smooths the way for sustainable executive management at Swiss Prime Site – and is firmly entrenched in our strategy. This enables us to implement innovation as an integrated principle across all our business fields. This is more important than ever in light of our climate target of «net zero by 2040».

Swiss Prime Site

Decarbonisation in the real estate sector requires far-reaching measures. The aim is to achieve this through a fundamental shift in energy supply. In this approach, Swiss Prime Site is guided by SDG 13 (Sustainable Development Goal No. 13), Climate Action. This requires innovative technologies that make the switch from fossil fuels to renewables possible in the first place. Buildings should – almost as a secondary function, and as a way of contributing to the smart cities of tomorrow – become actual power stations, producing energy for tenants and, in an ideal scenario, neighbours, too. This also offers the electricity sector the chance to shape the future of energy in a positive way. 

Future Board, Swiss Prime Site’s innovation committee, brings together innovation and sustainability initiatives from across the group and readies them for implementation in operations. The interdisciplinary committee regularly discusses potential partnerships with start-ups and tech companies. These must, in one way or another, have a positive impact on the four strategic innovation targets: i) improving operational efficiency, ii) servitisation of properties and sites, iii) boosting sustainability and wellbeing in development and operations, and iv) creating new business models and sources of income. The Startup Accelerator Programme is held for specific issues several times a year on the basis of these targets. 

The aim is to develop specific user-focused use cases and business models and to establish innovative thinking in the corporate culture. As part of the programme, participants have the opportunity to develop relevant projects for Swiss Prime Site Immobilien, Swiss Prime Site Solutions, Wincasa and Jelmoli and present them to the Executive Board. These partnerships enhance the Swiss Prime Site Group’s capacity for innovation and competitiveness, promote innovation from the ground up and enhance sustainable growth.

The latest workshop was all about decarbonisation, net zero and buildings as power plants. The large number of applications from interested parties were considered in advance and around a dozen were invited to pitch. The following companies and start-ups made it through to the second round.
 

Enerdrape develops prefabricated geothermal panels with a modular system that makes them easy to install. This technology enables all kinds of new and existing underground infrastructure to be converted into sites fulfilling heating and cooling requirements – such as underground car parks, for example. The solution makes it easier to access geothermal energy close to the Earth’s surface. 

The team at Evodrop provides a water treatment system that eschews the use of salt and preserves essential minerals for drinking water (such as calcium and magnesium). The technology guarantees healthy drinking water free from harmful substances and prevents limescale damage. The latter extends the lifespan of water supply infrastructure, reducing CO2 emissions in operation.

TVP Solar produces solar thermal high-vacuum flat-plate collectors for industrial uses. The systems help heat water and produce steam in a temperature range between 80 and 180 degrees Celsius, including in difficult weather conditions.

NewGreenTec generates green energy with small hybrid, decentralised wind-solar power stations. The wind turbines are small and compact, making them ideal for the roofs of buildings. The smart technology ensures that electricity is generated all year round, including at night.

SoHHytec offers a system based on solar technology for the on-site production of (sources of) energy. The company, which holds a world record for efficiency in this respect, provides a 100% clean and green system for hydrogen production – that also generates electricity, heating and oxygen.
 

These five finalists presented specific use cases developed for Swiss Prime Site to the Executive Board and submitted their partnership bids at the same time. The potential partnerships will be examined by the relevant group company in the next stage. Successful past partnerships have been entered into with organisations including Memox, FlexOffice, Airlite, Rüedu and Superlab Suisse. 

Upcoming Dates

The Accelerator Workshops are part of our Startup Accelerator Programme. Every year we hold several workshops on different topics. The next dates can be found here.

Setting an example of sustainability

As the largest real estate company listed on the stock exchange in Switzerland, we lead by example and are aware of our responsibilities towards our employees, customers, the environment and society as a whole. Our vision is to generate value and create sustainable living spaces. For us, this means a comprehensive, multidimensional business concept in which non-financial aspects are taken into account as well as financial goals.

Read story

Decarbonisation, net zero, buildings as power plants – making the reduction pathway a reality

Innovation smooths the way for sustainable executive management at Swiss Prime Site – and is firmly entrenched in our strategy. This enables us to implement innovation as an integrated principle across all our business fields. This is more important than ever in light of our climate target of «net zero by 2040».

Swiss Prime Site

Decarbonisation in the real estate sector requires far-reaching measures. The aim is to achieve this through a fundamental shift in energy supply. In this approach, Swiss Prime Site is guided by SDG 13 (Sustainable Development Goal No. 13), Climate Action. This requires innovative technologies that make the switch from fossil fuels to renewables possible in the first place. Buildings should – almost as a secondary function, and as a way of contributing to the smart cities of tomorrow – become actual power stations, producing energy for tenants and, in an ideal scenario, neighbours, too. This also offers the electricity sector the chance to shape the future of energy in a positive way. 

Future Board, Swiss Prime Site’s innovation committee, brings together innovation and sustainability initiatives from across the group and readies them for implementation in operations. The interdisciplinary committee regularly discusses potential partnerships with start-ups and tech companies. These must, in one way or another, have a positive impact on the four strategic innovation targets: i) improving operational efficiency, ii) servitisation of properties and sites, iii) boosting sustainability and wellbeing in development and operations, and iv) creating new business models and sources of income. The Startup Accelerator Programme is held for specific issues several times a year on the basis of these targets. 

The aim is to develop specific user-focused use cases and business models and to establish innovative thinking in the corporate culture. As part of the programme, participants have the opportunity to develop relevant projects for Swiss Prime Site Immobilien, Swiss Prime Site Solutions, Wincasa and Jelmoli and present them to the Executive Board. These partnerships enhance the Swiss Prime Site Group’s capacity for innovation and competitiveness, promote innovation from the ground up and enhance sustainable growth.

The latest workshop was all about decarbonisation, net zero and buildings as power plants. The large number of applications from interested parties were considered in advance and around a dozen were invited to pitch. The following companies and start-ups made it through to the second round.
 

Enerdrape develops prefabricated geothermal panels with a modular system that makes them easy to install. This technology enables all kinds of new and existing underground infrastructure to be converted into sites fulfilling heating and cooling requirements – such as underground car parks, for example. The solution makes it easier to access geothermal energy close to the Earth’s surface. 

The team at Evodrop provides a water treatment system that eschews the use of salt and preserves essential minerals for drinking water (such as calcium and magnesium). The technology guarantees healthy drinking water free from harmful substances and prevents limescale damage. The latter extends the lifespan of water supply infrastructure, reducing CO2 emissions in operation.

TVP Solar produces solar thermal high-vacuum flat-plate collectors for industrial uses. The systems help heat water and produce steam in a temperature range between 80 and 180 degrees Celsius, including in difficult weather conditions.

NewGreenTec generates green energy with small hybrid, decentralised wind-solar power stations. The wind turbines are small and compact, making them ideal for the roofs of buildings. The smart technology ensures that electricity is generated all year round, including at night.

SoHHytec offers a system based on solar technology for the on-site production of (sources of) energy. The company, which holds a world record for efficiency in this respect, provides a 100% clean and green system for hydrogen production – that also generates electricity, heating and oxygen.
 

These five finalists presented specific use cases developed for Swiss Prime Site to the Executive Board and submitted their partnership bids at the same time. The potential partnerships will be examined by the relevant group company in the next stage. Successful past partnerships have been entered into with organisations including Memox, FlexOffice, Airlite, Rüedu and Superlab Suisse. 

Upcoming Dates

The Accelerator Workshops are part of our Startup Accelerator Programme. Every year we hold several workshops on different topics. The next dates can be found here.

Contributions in kind – the ideal solution for property owners

Direct property investment can be challenging for property owners. The kind of ­detailed knowledge of regional markets and specific real estate expertise that Swiss Prime Site Solutions offers is essential. Many different factors need to be ­considered in an existing portfolio, such areas as sustainability, vacancy reduction, ­renovation backlogs and utilisation of potential, as well as regulatory and political ­challenges. Economies of scale are also an important consideration here.

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Direct property investment can be challenging for property owners. The kind of ­detailed knowledge of regional markets and specific real estate expertise that Swiss Prime Site Solutions offers is essential. Many different factors need to be ­considered in an existing portfolio, such areas as sustainability, vacancy reduction, ­renovation backlogs and utilisation of potential, as well as regulatory and political ­challenges. Economies of scale are also an important consideration here.

The contribution of real estate to an ­investment vehicle is defined as a contribution in kind. In return, the owner receives shares in the investment vehicle (investment foundation and/or investment fund). The tax-optimised contribution in kind allows the property owner to transfer their directly held property portfolio to an indirect real estate investment. A contribution in kind also gives small and medium-­sized pension funds and institutional investors access to larger real estate investment volumes that are professionally and efficiently managed.

«Our decision to enter into a transaction with the Swiss Prime Investment Foundation was influenced not only by the investment group’s strong portfolio, but also by its professional approach.»
Antonio Sacco, Managing Director of the Ringier Group’s pension fund

Diversification is of central importance in optimising the risk-return profile of a property portfolio. Since direct real estate investment by pension funds has historically grown regionally, contribution-in-kind transactions allow greater geographical and use-specific diversification. Furthermore, the considerations around sustainability are crucially important.

Implementing a contribution in kind is a multi-step process which usually comprises five key milestones. Firstly, the owners need to be willing to sell the properties. The fund management company or investment foundation then checks whether the property is suitable for acquisition, while the custodian bank verifies the eligibility of the investors. The third step involves a thorough inspection of the property, in which the purchase price is determined by a valuation expert, and a purchase price indication is given. The fourth step involves the payment of the purchase price, which is made in the form of share certificates and, if applicable, cash. In the fifth and final step, the previous property owner becomes the new investor with shares.

Swiss Prime Site Solutions has demonstrated its expertise with contributions in kind several times over recent years. We have successfully completed five such trans­actions with a value of about CHF 400 million. For example, we were able to take over 33 properties for the Swiss Prime Investment Foundation as part of a contribution in kind from the Ringier Group’s pension fund. «Our deci­sion to enter into a transaction with the Swiss Prime Investment Foundation was influenced not only by the investment group’s strong portfolio, but also by its professional approach», says Antonio Sacco, managing director of the Ringier Group’s pension fund.

We support our clients throughout the entire contribution-in-kind process with our extensive experience and through access to our nationwide network of experts. Our innovative process for execution of contributions in kind serves as an exemplar.

Benefits of in-kind ­contributions

Better performance

­Efficient use of capital, potential ­revaluation gains, tax advantages for investors, asset optimisation

Less risk

Greater diversification effect, stable cash flow, maximum transparency

Optimisation of resources

Assignment of operational property management, efficiency gains, ­freeing up of resources, succession planning, expertise of Swiss Prime Site Solutions

Greater flexibility

Timing of the contribution in kind ­independent of issuance windows, greater fungibility (possible trade­ability of shares), more decision-­making freedom

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