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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The healthy building

Health-consciousness, which has been increasing over recent years, has been greatly heightened by the COVID-19 pandemic. This is placing new demands on real estate. After all, in Switzerland people now spend up to 21 hours a day indoors. It is important to take this multi-layered change in requirements on board.

I n the future, health-conscious people won’t just be keeping a close eye on the food they eat; increasingly, they’ll also be looking at the spaces in which they have to spend time. So it’s time to ensure that both living spaces and offices promote health and productivity. Due to the pandemic, such aspirations are gaining traction among everyone, from real estate owners, tenants and users to public authorities and policy-makers. The issue also has economic relevance. According to a study by Harvard University, healthy buildings can significantly lower rates of employee absenteeism and health costs for employers.

Our goal is to place people at the heart of what we do and enhance their well­being through our real estate.

Making people the focus

Our goal is to place people at the heart of what we do and enhance their wellbeing through our properties. To do this, we need intelligent technologies as well as personal services customised to the user. According to the Healthy Building Network knowledge platform, the focus is on achieving an optimal indoor climate, ventilation and lighting quality, acoustics and invigorating interior design. Some early examples in Zurich and Basel show how office properties might be designed with these features.

First impressions count

In future, all properties will be entered via an automatic sliding or revolving door. Sanitiser will be offered as standard in the entrance hall. As you walk through the entrance, your body temperature will be taken. If this is within the appropriate range, you can proceed into the rest of the building, by scanning your hand. A lift concept that interacts with the overall system, like the one that has long been a featureof the Prime Tower in Zurich, carries the individual – identified by the system – straight up to their desired floor. The lifts are equipped with air purifiers that maintain the air quality within the lift.

Interaction and transit areas will be much more spacious in future.

Promoting health and productivity

Interaction and transit areas will be much more spacious in the future, so that employees can move more flexibly and meet each other to exchange ideas. The lighting system will be based on human-centric lighting technology. This will ensure optimum mental and emotional wellbeing and will stimulate productivity. All of the materials used will be free from substances that could have a negative impact on wellbeing, such as volatile organic compounds. Quite the opposite, in fact: they will be treated with a permanent antimicrobial and odour-neutralising coating.

Better air means a better «climate»

The Messeturm in Basel was renovated in 2020/21. Measurements show consistent improvements in air quality. This is also aided by plants that act as humidifiers and natural acoustic insulation. These changes have also helped to reduce stress. The air conditioning system is part of the «healthy building ecosystem» and distributes the purified interior air by zone, at the right temperature for each zone. This is made possible by sensors that monitor heat, cold, pressure and the CO2 content of the indoor air on an ongoing basis and trigger control commands if the readings stray from the optimum.

For the users’ wellbeing

On-site services such as fitness, relaxation and catering options that promote good health and specially designed colour schemes and furnishing concepts also address new needs. In this age of employer branding and wider social awareness of healthy living, the human feel-good factor in a «healthy building» will be hugely instrumental in boosting the value and appeal of real estate. For the benefit of users, tenants and property owners.

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

The healthy building

Health-consciousness, which has been increasing over recent years, has been greatly heightened by the COVID-19 pandemic. This is placing new demands on real estate. After all, in Switzerland people now spend up to 21 hours a day indoors. It is important to take this multi-layered change in requirements on board.

I n the future, health-conscious people won’t just be keeping a close eye on the food they eat; increasingly, they’ll also be looking at the spaces in which they have to spend time. So it’s time to ensure that both living spaces and offices promote health and productivity. Due to the pandemic, such aspirations are gaining traction among everyone, from real estate owners, tenants and users to public authorities and policy-makers. The issue also has economic relevance. According to a study by Harvard University, healthy buildings can significantly lower rates of employee absenteeism and health costs for employers.

Our goal is to place people at the heart of what we do and enhance their well­being through our real estate.

Making people the focus

Our goal is to place people at the heart of what we do and enhance their wellbeing through our properties. To do this, we need intelligent technologies as well as personal services customised to the user. According to the Healthy Building Network knowledge platform, the focus is on achieving an optimal indoor climate, ventilation and lighting quality, acoustics and invigorating interior design. Some early examples in Zurich and Basel show how office properties might be designed with these features.

First impressions count

In future, all properties will be entered via an automatic sliding or revolving door. Sanitiser will be offered as standard in the entrance hall. As you walk through the entrance, your body temperature will be taken. If this is within the appropriate range, you can proceed into the rest of the building, by scanning your hand. A lift concept that interacts with the overall system, like the one that has long been a featureof the Prime Tower in Zurich, carries the individual – identified by the system – straight up to their desired floor. The lifts are equipped with air purifiers that maintain the air quality within the lift.

Interaction and transit areas will be much more spacious in future.

Promoting health and productivity

Interaction and transit areas will be much more spacious in the future, so that employees can move more flexibly and meet each other to exchange ideas. The lighting system will be based on human-centric lighting technology. This will ensure optimum mental and emotional wellbeing and will stimulate productivity. All of the materials used will be free from substances that could have a negative impact on wellbeing, such as volatile organic compounds. Quite the opposite, in fact: they will be treated with a permanent antimicrobial and odour-neutralising coating.

Better air means a better «climate»

The Messeturm in Basel was renovated in 2020/21. Measurements show consistent improvements in air quality. This is also aided by plants that act as humidifiers and natural acoustic insulation. These changes have also helped to reduce stress. The air conditioning system is part of the «healthy building ecosystem» and distributes the purified interior air by zone, at the right temperature for each zone. This is made possible by sensors that monitor heat, cold, pressure and the CO2 content of the indoor air on an ongoing basis and trigger control commands if the readings stray from the optimum.

For the users’ wellbeing

On-site services such as fitness, relaxation and catering options that promote good health and specially designed colour schemes and furnishing concepts also address new needs. In this age of employer branding and wider social awareness of healthy living, the human feel-good factor in a «healthy building» will be hugely instrumental in boosting the value and appeal of real estate. For the benefit of users, tenants and property owners.

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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