Impact

Creat­ing living spaces

Swiss Prime Site AG is the leading listed real estate company in Switzerland. Its high-quality real estate portfolio is worth approximately CHF 12 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. In doing this, the Group creates market-compliant, sustainable living spaces for customers and society as a whole. The Services business segment comprises the real estate-related Group companies Swiss Prime Site Solutions, Wincasa and Jelmoli. This gives Swiss Prime Site a unique positioning to meet customers' needs in the long term, increase their satisfaction and strengthen their loyalty. In addition, the company invests in innovation across the Group and wherever possible at all levels of the value chain in order to sustainably reduce the consumption of resources and ensure the long-term increase of financial success.
 

Strategy and business model

Real Estate segment

Services segment

The Swiss Prime Site Group is pursuing its vision of creating sustainable living spaces for society as a whole and for its customers. With its first-class property portfolio worth CHF 12.3 billion and a comprehensive range of services along the real estate life cycle, the company is uniquely positioned to turn this vision into reality, thereby meeting the needs of its customers and society in the long term.

Business model

Swiss Prime Site’s business model is based on the vision of creat­ing innovative and sustainable living spaces. It covers the entire value chain along the real estate life cycle. This includes successfully investing in or acquiring a property or site, project development and project realisation, portfolio and asset management, property management and, if necessary or beneficial, divesting properties, sites or parts thereof. Swiss Prime Site works to the highest quality standards and systematically focuses on current and future market needs. Its goal is to ensure long-term, multi- dimensional value generation.

Swiss Prime Site’s integrated business model

Swiss Prime Site Immobilien is a real estate investment company focusing on Swiss property. As at the end of 2020, the portfolio had a total value of CHF 12.3 billion. It consists of prime properties, mainly occupied by commercial tenants.

Business model

Swiss Prime Site Immobilien initiates the group’s value-generation process by acquiring commercial properties, sites or real estate. Swiss Prime Site Immobilien’s primary business focus is portfolio and asset management. Developing and realising real estate projects and converting and modernising entire sites are also very important ways of creating value. The prime property portfolio is strategically optimised on a continuous basis.

Swiss Prime Site Immobilien value-generation processes

Property portfolio

Swiss Prime Site’s property portfolio contains high-quality property and locations. The portfolio as a whole also has a good sustainability balance sheet. To optimise this further, targeted measures are being taken and investments made as part of Swiss Prime Site’s CO2 reduction pathway. The aim is to continuously improve resource consumption and achieve climate neutrality in the property portfolio by 2040 (see CO2 reduction pathway).

As at the end of 2020, the portfolio comprised 185 properties in total. Total floor space increased to 1 673 005 m², while the vacancy rate was kept at 5.1% through proactive management despite the difficult environment.

Geographic allocation

According to Wüest Partner, roughly 80% of the group’s properties rank in the quadrants with the highest quality based on the overall market. The majority of properties (76%) are located in German-speaking Switzerland. In this context, the canton of Zurich and particularly Zurich City account for the main share in this region with 44%. Another important region is the Lake Geneva basin with a share of 22%.

Utilisation

Swiss Prime Site has mainly geared its portfolio to the needs of commercial and services businesses. Currently 44% is let as offices and 26% as retail units. The property portfolio’s maturity profile is long-term and thus attractive. Roughly 21% of net rental income is generated with rental agreements with a term of ten years or more. Another 34% of the portfolio is due for renewed leasing at terms of between four and nine years.

Highlights from the reporting year

In 2020, Swiss Prime Site Immobilien continued with the targeted growth of its portfolio. Major milestones were reached at Stücki Park in Basel, where the company is expanding floor area by more than 70 000 m² (laboratories and offices) by 2023. Tenants have moved into the first units. The multiplex cinema, which was completed in autumn 2020, did not open its doors until 2021 because of the pandemic. The «West-Log» project in Zurich-Altstetten and JED (existing building) in Schlieren are close to completion in early 2021. Elektro-Material moved into the «West-Log» logistics building as an anchor tenant. The two anchor tenants in JED, Halter and Zühlke, also moved into their rental space. As the buildings are flexible and can be used for a wide variety of office and commercial purposes, the new and future tenants will be able to structure the space perfectly for their activities. The Schönburg project in Berne and the YOND project in Zurich were awarded international architectural prizes in the reporting year.

As part of the further development of its portfolio, Swiss Prime Site Immobilien placed great emphasis in the reporting year on reducing heat and electricity consumption. To increase its own production of renewable electricity, it identified 18 properties in which additional photovoltaic systems could be installed. Of these, four facilities with a total installed capacity of around 380 kWp were put into operation in the reporting year. More projects will be completed in 2021. More information on reducing the ecological footprint can be found in the CO2 reduction pathway.

Portfolio split by region

Basis: Fair value as at 31.12.2020

Portfolio split by type of use1

Basis: Net rental income as at 31.12.2020

1 Real Estate segment

Project pipeline

One of Swiss Prime Site Immobilien’s strengths is its ability to develop its own projects. This means the company can operate with a high degree of autonomy from market cycles while at the same time improving the level of sustainability within the portfolio.

Development projects are based on the group’s strategic targets of boosting organic growth and increasing corporate profitability and renewing the portfolio through sustainable building materials and structures. Earnings from completed projects accrue in the form of revaluation gains, rising rental income and sales proceeds. New projects developed by Swiss Prime Site Immobilien generally exhibit above-average net yields compared to both the market and the existing portfolio and the highest sustainability standards.

The investment volume of Swiss Prime Site Immobilien’s project pipeline amounted to around CHF 2 billion as at the end of 2020.

Projects under construction

The construction projects have an investment volume (including land) of around CHF 1 080 million. With a volume of CHF 300 million, the largest single project is Alto Pont-Rouge in Lancy. The project plays a significant role for the Geneva region due to its character and location, since another transportation juncture and economic hub will be created for the city as a result. Shortly after construction began in the second half of 2017, two of the five properties to be built at the large Espace Tourbillon development in Plan-les-Ouates were sold. Two other buildings are in the process of being sold, one of them in condominium owership. The fifth building (CHF 85 million investment) will be added to the existing portfolio. Projects under construction exhibit an average net yield that exceeds the current portfolio average.

Projects in planning

At the end of 2020, projects in the planning phase had an estimated investment volume (including land) of around CHF 640 million. With a volume of CHF 222 million, the largest single project is Müllerstrasse in Zurich. This involves the large-scale modernisation of the existing office building. Four projects for the construction of new residential and geriatric care centres (Monthey, Olten and Richterswil) and a residence (Paradiso) for Tertianum are currently also in the planning stage or already under construction. In addition, Swiss Prime Site Immobilien has land reserves and considerable reserves of usable floor space in its stock.

Highlights from the reporting year

Swiss Prime Site also believes in the importance of having development projects that are sustainable. Since 2019, the company has been guided by the Swiss Sustainable Building Standards (SNBS) criteria and is also moving into new territory with regard to the topic of the circular economy. In what is a first, the Company is using circular concrete produced by the company Eberhard for the new JED building in Schlieren. This means it can massively reduce the primary resources of sand and grit and also store CO2 in the granulate of the secondary building material over a long period.

Projects under construction

Value in CHF

Projects in planning

Value in CHF

With its group companies Swiss Prime Site Solutions, Wincasa and Jelmoli, the company has strong providers of services that are in high demand within the environment of its real estate core business, the group as well as third-party customers and that strengthen its business model.

Swiss Prime Site Solutions

Swiss Prime Site Solutions provides comprehensive services at portfolio and asset management level throughout the full real estate life cycle. The services offered in portfolio and asset management, capital procurement, development & construction and acquisition & sales include preparing acquisitions and sales strategies, potential analyses within the existing portfolio, managing and monitoring real estate developments, carrying out capital increases and developing customer-specific strategies to increase efficiency and market penetration. From 2021, Swiss Prime Site Solutions will expand its value creation with services in the area of fund products. This will significantly increase the growth of assets under management and the profits from the group company.

Wincasa

Wincasa’s business model is based on the two central value-added pillars of property management and centre & mixed-use site management and construction & facility management. The services offered to corporate customers range from management, owner representation and construction management through to revitalisation and re-letting of properties and strategic consulting.

Jelmoli

Jelmoli offers customers an innovative gastronomy and event experience in addition to a varied brand mix. By letting floorspace to third parties, Jelmoli has also been able to further optimise its value chain. To that end, Jelmoli also uses a first-class property from Swiss Prime Site Immobilien, located directly on Bahnhofstrasse in the centre of Zurich.

Services segment value-generation processes

Engagement and responsibility

Sustainability is an integral element of Swiss Prime Site’s corporate strategy. As part of their business activities, the Company is committed to the transformation into an economy and society that builds on the partnerships between different stakeholders and in which commercial success, human well-being and a careful use of natural resources go hand in hand.
 

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«The integration of key sustainability aspects in the business model not only makes commercial sense, it also reflects Swiss Prime Site’s understanding when it comes to recognising the cross- generational responsibil­ity to create and design sustainable living spaces!»

Martin Pfenninger
Head Group Sustainabilty Swiss Prime Site

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living spaces of tomorrow.

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Sustainability is an integral element of Swiss Prime Site’s corporate strategy. As part of their business activities, the Company is committed to the transformation into an economy and society that builds on the partnerships between different stakeholders and in which commercial success, human well-being and a careful use of natural resources go hand in hand.

Long-term alignment with the Sustainable Development Goals (SDGs)

Swiss Prime Site sets itself long-term goals based on the Swiss government’s Energy Strategy 2050, the Paris Climate Accord and the Sustainable Development Goals (SDGs) of the United Nations. Swiss Prime Site uses the 17 SDGs as a system of reference in which to embed their engagement in the context of global sustainable development. The focus is on seven key objectives to which Swiss Prime Site can contribute by fulfilling its responsibilities in the core business: SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 17 (Partnerships for the Goals).

The relevant Sustainable Development Goals are also reflected in the material issues defined by Swiss Prime Site that form the basis for the integrated management of financial and non-financial aspects as well as integrated reporting.

Assuming responsibility for safe, resilient and sustainable cities and settlements

Swiss Prime Site considers SDG 11 (Sustainable Cities and Communities) as an appropriate guiding principle for their commercial responsibilities and is committed to safe, resilient and sustainable cities and settlements. This reflects the corporate vision of creating sustainable living spaces, as well as integrating several trends that have a significant impact on the core business. Among others, these include urbanisation, intergenerationality and climate-adapted design of living spaces.

Swiss Prime Site appreciates that a meaningful contribution to SDG 11 can only be made if the Company builds on its strengths. This includes having a clear focus on clients’ needs, supporting employees, encouraging an innovative work culture and making investments that increase energy efficiency and reduce CO2 emissions. Based on these pillars, Swiss Prime Site has developed group-wide, strategic objectives that will be further operationalised within the group companies, leading the way to a successful, sustainable future.

SDGUN goal descriptionCapitalMaterial issues Swiss Prime Site
Ensure inclusive, fair and high-quality education and promote opportunities for lifelong learning for allEmployees
  • Employee development and satisfaction
  • Health, safety and well-being
Promote inclusive and sustainable economic growth, employment and decent work for allFinance
  • Risk management and responsible governance
  • Earnings growth and attractive share
Build resilient infrastructure, promote
sustainable industrialisation and foster innovation
Innovation
  • Corporate culture, reputation and image
  • Market orientation
  • Innovation culture and partnerships
  • Data use & data protection
Make cities inclusive, safe, resilient and sustainableInfrastructure
  • Contribution to sustainable urban development
  • Optimum connection of properties
  • Process optimisation and cost reduction
Ensure sustainable consumption and production patternsEcology
  • Sustainable procurement / supply chains
  • Circular economy
Develop measures to combat climate change and its effects as a matter of urgencyEcology
  • Resource consumption and CO2 emissions
  • Building certifications and climate-adapted construction
Revitalise the global partnership for sustainable developmentStakeholders
  • Customer orientation
  • Investor relations management

For the living spaces of tomorrow

We work together with start-ups to intensify our innovation process and drive forward pioneering technologies and business models. Our Startup Accelerator Programme provides a platform that brings together start-ups, specialists from Swiss Prime Site and our network for a two-day event where they can develop new ideas and solutions.

Swiss Prime Site Innovation Stakeholder

It is already the tenth time that we have looked for scalable business models and technology innovations within the context of our Startup Accelerator Programme. And we found what we were looking for!

The anniversary edition of our workshop focused on ConstructionTech and Smart Materials. From over 80 applications received, we invited eight startups to present at our main Zurich office in the Prime Tower. The jury was made up of our internal specialists from the Portfolio Management, Construction Management & Development, Sustainability, Corporate Ventures & Innovation divisions as well as specifically selected business and network partners. Four start-ups managed to impress the jury members with the potential of their products and services. 

Individual coaching by experts
In the hours that followed, the objective for these finalists was to further demonstrate this potential and develop concrete cases for the business activities of Swiss Prime Site. Our experts supported the start-ups, offering their knowledge and individualised coaching. «It’s amazing when companies turn their words into action and encourage their employees to develop innovative and sustainable solutions in collaboration with start-ups. I’d like to give the start-ups the following advice: take this opportunity and be prepared to deliver! Personally, I’m delighted by the collaboration with the experts of Swiss Prime Site, who asked the right questions and helped us develop our business case further», says Dr Gnanli Landrou, founder and Lead Executive Officer of Oxara, when asked about his participation.

To wrap up the two busy days, the start-ups presented their detailed proposals one last time in the final pitch. The business cases included heating and cooling ceilings equipped with membranes (Interpanel), induction solutions for charging electric cars (Magment), a method for stabilising soil with microbe injections instead of cement or other chemical substances (Medusoil), and a production process for cement and bricks that massively reduces CO2 emissions (Oxara). In all four cases, the expert jury recognised the value of a partnership in the form of pilot projects, PoCs or by offering testing space to assess their feasibility. A member of the jury commented: «By interacting with the start-ups and my colleagues in the industry, I had the opportunity to move beyond the day-to-day business tasks, allowing me to think more openly and discover new solutions».

Kick-off for a new business ecosystem
«As the orchestrator of the Accelerator Programme, we are proud to provide powerful market access to forward-looking and sustainable products or services. Together with the start-ups and our partners, we want to drive industry-shaping innovations in our field and build innovation ecosystems», says Bastian Zarske Bueno, Head Group Corporate Ventures & Innovation at Swiss Prime Site, summing up the two days.

Startup Accelerator Programme

Each year, we look at several hundred submissions from start-ups from all over the world. These must have a relevant connection to our core Real Estate business or to our real estate-related group companies, and offer strategic added value to our business model. Since 2018, we have received close to 1000 applications and had 80 start-ups participating in our Accelerator Programme.

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Material issues

In 2019, as part of a comprehensive materiality analysis, Swiss Prime Site determined for the second time since 2017 which issues are particularly important for the further development of integrated management. This enabled the Company to create the basis for the integration of important financial and non-financial issues into the management of the group and defined the strategic focus of integrated reporting (GRI 102-49).
 

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«JED has been designed according to our current and future requirements: workstations, work lounges and creative zones. Between the workstations, we install breakout areas and facilities that can be used spontaneously. All the large conference rooms will be located in «The Branch», our co- working space that outside companies will also be able to book.»

Andreas Hänsenberger
Concept Developer, Halter AG

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office spaces of the future.

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In 2019, as part of a comprehensive materiality analysis, Swiss Prime Site determined for the second time since 2017 which issues are particularly important for the further development of integrated management. This enabled the Company to create the basis for the integration of important financial and non-financial issues into the management of the group and defined the strategic focus of integrated reporting (GRI 102-49).

Process for determining the material issues

In the materiality analysis, the aim was to assess how important the particular issue is to the different stakeholders, and to the business success of Swiss Prime Site, and also how important the issue is with regard to the Company’s impact on sustainable development. Assessing business relevance as the third dimension ensures that the material issues are closely related to the core business and can be integrated into strategic management.

Swiss Prime Site arranged the issues in order of materiality according to the six capitals of the International Integrated Reporting Council (IIRC). Adopting the capital-based approach reflects the Company’s wide-ranging aspiration to create sustainable value for the various stakeholder groups from a wide range of resources.

Integration of internal and external stakeholders

In particular, Swiss Prime Site used the materiality analysis to enter into an ongoing dialogue with different internal and external stakeholders. In addition to management representatives, business partners and clients were also consulted about their priorities. Swiss Prime Site also took into account the findings of the 2019 Stakeholder Panel. The next materiality review is scheduled for 2021 (GRI 102-46).

Inclusion of material issues in goal-setting

The materiality analysis serves as a starting point for Swiss Prime Site to make further improvements to the integrated manage- ment of financial and non-financial aspects. In the reporting year, the Company – drawing on the material issues amongst others – defined overall corporate goals, from which they derived measures for the group companies (see Strategy/Sustainability goals). The materiality analysis also defines the focus of this integrated reporting.

Results of the materiality analysis¹

The new normal: flexible office spaces

The current pandemic has shown that radical change is also sweeping through office settings. It is incumbent on property investors to work with their tenants to come up with sustainable solutions for future office spaces.

Swiss Prime Site Swiss Prime Site Immobilien Infrastructure Stakeholder Employees

The impact of the coronavirus crisis on how much floor space companies are likely to require in future and its effects on the office property market as a whole are the subject of much discussion these days. Almost overnight, hundreds of thousands of employees were suddenly forced to work from home. The way we carry out our jobs and communicate with each other has been turned completely upside down within a very short space of time.

It is gratifying that most of us have been able to adjust to the new situation relatively quickly. Means of communication facilitating the new status quo have absolutely mushroomed. Now, we don’t think twice about conducting training sessions in the form of webinars or holding team meetings via video call.

Before the coronavirus crisis, working from home was fairly uncommon due to a number of factors, including the high standard of public transport and relatively short commuting distances. According to a study by UBS, Swiss employees have the shortest average commute in Europe, at just over 30 minutes.

Few people yet have long-term experience of working from home. Nonetheless, people are increasingly expressing criticismt. Employees feel cut off from the business community and staying in close contact co-workers is now trickier or altogether impossible. And then there’s the issue of new starters, who don’t really get to immerse themselves the company culture. Despite the new modes of communication, it is still difficult to pick up on people’s feelings, emotional nuances or the general mood over a video call, never mind actually address them. Besides, video calls simply aren’t conducive to innovation, which, like so much else, requires iterative and informal exchange. This is something that almost only ever comes from face-to-face contact; it cannot be scheduled to order. What’s more, career advancement is all the more difficult when working from home.

Working where and when you want
The Fraunhofer Institute for Industrial Engineering carried out a recent survey of almost 500 German companies. Unsurprisingly, some 93 percent of those questioned stated that they were using more online and video conferencing systems. Almost 80 percent  took the view that the demand for flexible working will continue to rise sharply among employees going forward.

As such, companies are endeavouring to step up the digitalisation of their processes and bring their businesses into line with the new needs of their employees. They are being called upon to provide more space for creative thought and to provide greater scope for people to come together and exchange ideas.

It will hardly come as a surprise to learn that the Deloitte Millennial Survey 2018 found that Generations Y and Z believe «diversity and flexibility are the key to staff loyalty.»

More space for creative thought is needed.

The demand for more space for socialising and areas for gathering together is increasing.

According to the Deloitte Millennial Survey 2018 for generations Y and Z «diversity and flexibility are the key to staff loyalty.»

New ways of working together
Claims that the upsurge in working from home will mean less need for office space fall short of the mark. Those heralding the demise of offices as we know them and predicting the dwindling of the office property market should also be viewed critically. Property developers are currently pondering the types of spaces that are likely to be in demand over the coming years.

There are all sorts of conjectures about the market: some experts reckon that the need for office space will be slashed in half, while others expect it to double. The office property market is becoming more diverse in nature due to the impact of the coronavirus and all that it entails. Companies are also in a position to reassess the average space assigned to each employee. In some cases, they may be looking to increase this significantly. At present, members of staff often sit too close together, while breakout areas and meeting rooms are few and far between. People are now looking for more space for socialising and specific areas for gathering together. At the former NZZ printing plant in Schlieren (now «JED»), employees enjoy a generous 20 m2 each as the new design for the premises incorporates meeting points such as a spacious coffee bar and a staircase with inbuilt seating.

Of course, it’s worth bearing in mind that working part-time was very common in Switzerland (60 to 90 percent of employees), even before the pandemic. We create offices for our clients based on a 0.7 concept, which means that they offer a fixed workplace for around 70 percent of the company’s employees at any given time.

The office property market is becoming more diverse in nature due to the impact of the coronavirus and all that it entails.

Even before the current crisis, companies were very mindful of the part that their culture and values play in their employer branding, which is so important in attracting highly qualified employees who are well suited to their business. Corporate culture is something that needs to be actively experienced.

Swiss Prime Site has endeavoured to build in maximum flexibility in terms of space for tenants at YOND, an office and commercial property in Zurich-Albisrieden that opened earlier this year. The high ceilings allow the occupants to grow into the space to optimal effect: mezzanine floors can be installed on 20 to 80 percent of the floor space using specially developed modular systems.

Back to the new normal
We are rapidly becoming accustomed to the coexistence and interplay between remote working and the traditional office. Both types have their place.

This represents a major opportunity for real estate developers. More than ever before, it is incumbent on us to enter into dialogue with our tenants, helping them to forge new pathways and showing them just what can be done. After all, the new normal is all about putting flexibility centre stage and embedding each company’s unique DNA into their office spaces.

This article by Karin Voigt, Head Portfolio Management, and Marcel Schaad, Head Acquisitions & Sales at Swiss Prime Site Immobilien, was published as part of the NZZ Real Estate Days 2020 in the NZZ supplement.

Group objectives and roadmap

Swiss Prime Site sets targets that are phased in over time and focused on different levels. These targets and measures are based on the question of how the company can create value for different stakeholders. Moreover, which issues are particularly important for them and for the short, medium and long-term business success. Using materiality analysis, the financial and non-financial topics that will have a significant impact on general economic, social and environmental developments are evaluated and defined. On this basis, the goals are developed and put down into a roadmap – structured according to the capitals of the «integrated reporting» approach. This procedure reflects a sustainable business management and provides the basis for the integrated reporting.
 

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«Sustainable success is based on medium- and long-term objectives being systematically rooted in the business plan and reflected as measurable indicators in the ­management’s annual objectives.»

René Zahnd
CEO Swiss Prime Site

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Swiss Prime Site’s attitude and
goals regarding sustainability.

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Swiss Prime Site sets targets that are phased in over time and focused on different levels. These targets and measures are based on the question of how the company can create value for different stakeholders. Moreover, which issues are particularly important for them and for the short, medium and long-term business success. Using materiality analysis, the financial and non-financial topics that will have a significant impact on general economic, social and environmental developments are evaluated and defined. On this basis, the goals are developed and put down into a roadmap – structured according to the capitals of the «integrated reporting» approach. This procedure reflects a sustainable business management and provides the basis for the integrated reporting.

Our achievements in 2020

In addition to the corporate objectives communicated in last year’s Annual Report, other objectives were added during the year due to COVID-19.

The Swiss Prime Site Immobilien asset management team received more than 500 tenant requests; these needed to be processed and concluded before the end of the year. More than 2 000 additional tenant requests were processed and concluded by Wincasa on behalf of third-party customers.

Despite the challenging year, it is important not to lose sight of the objectives set out in the 2019 Integrated Report. The first GRESB submission for the existing and development properties portfolio and the launch of the first green bond in accordance with the criteria of the framework drawn up for that purpose enabled two key milestones to be reached in environmental terms.

Despite all efforts, only the objectives relating to the fluctuation of employees, particular in the group companies Wincasa and Jelmoli, with high numbers of employees, were once again missed by a clear margin. It is therefore imperative that there is renewed intensification of measures in this area.

Group objectives in more detail

Under the supervision of the Sustainability Board, set up in 2019, Swiss Prime Site enhanced its long-term, strategic sustainability objectives in the reporting year. Leadership ambitions for targets and action programmes are based on three areas which are key for the whole Swiss Prime Site Group, derived from the vision and mission, material issues and the six capitals: customers, employees and environment. Innovative development of the business model, the provision of infrastructure that is fit for the future and sustainable financial success are part of the integrated range of objectives.

While the formulation of objectives regarding climate neutrality and the related CO2 reduction pathway are already well established and embedded in the strategy, objectives and measures relating to customers and employees need to be further specified for the group companies in question.

CategoryGroup objectivesAssociated issuesLead KPIs
StakeholdersFocus on the satisfaction and wellbeing of our customers.Ensure customer satisfaction and safety and promote wellbeing
  • Investment in customer health and safety
Customer satisfaction and retention
  • Evaluation of customer surveys
  • Net promoter score
Finance

Create sustainable value.

Financing strategy
Dividend policy
  • Equity ratio
  • Dividends
Infrastructure

Investment in socially acceptable and environmentally friendly properties and infrastructure in prime locations.

 

Sustainable property and asset management
  • GRESB performance score
  • Vacancy rate
Future-oriented new builds and renovation projects in line with market requirements
  • GRESB development score
  • Yield
InnovationFurther development of the business model and promotion of an innovative corporate culture.Market orientation
  • Re-letting
  • Innovative energy perceived by customers
Innovative corporate culture
  • Innovative energy perceived by employees
EcologyOngoing optimisation of resource use and long-term objective of climate neutrality.2-degree objective (science-based targets)
  • Level of objective attainment CO2 reduction pathway
Sustainable procurement
  • Level of implementation: sustainability criteria and exclusion criteria in procurement
EmployeesStrengthening the employer brand and encouraging the customer focus of our employees.Employee development and retention
  • Fluctuation rate
  • Employee satisfaction
  • Investment in training and development
Responsibility, customer focus and service approach
  • Evaluation of employee surveys
  • Internal training based on customer feedback

Implementation in the group companies

As part of the business plan and budgeting processes, the group objectives need to be broken down to the individual group companies. The group companies can then define additional objectives and measures and assign them to the relevant capitals. It is important that at least one objective per capital contributes to the achievement of the overall group objectives.

This will help to streamline the group companies’ roadmaps, which to date have been created bottom-up. In addition, the KPIs, which are set top-down, will further improve the measurability of progress toward the objectives across the group.

Medium-term objectives

   
StakeholdersContinuous increase in customer satisfaction
FinanceIncrease of eligible properties according to Green Bond Framework
InfrastructureGRESB Score > peer average
InnovationTargeted investments in start-ups
EcologyClimate-neutral property portfolio by 2040
EmployeesContinuous increase in employee satisfaction

Stakeholders

For Swiss Prime Site, regular dialogue with all stakeholders is a key element of sustainable leadership. The Company seeks to identify needs and expectations in dialogue and focus business activities towards meeting these in harmony with the corporate strategy. This particularly applies to the needs and issues of customers. All group companies are in constant communication with them, whether as part of daily business interaction, through dedicated feedback conversations or the usual information channels.

 

«Nearly all of us are currently working from home. However, despite digitalisation and remote working, it is clear that innovation and good ideas also come from personal and physical interaction in teams. JED offers the perfect conditions for developing new ideas through to market success with our customers.»

Nicolas Durville
CEO and Partner Zühlke Group

www.jed.swiss

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innovative «YOND» project.

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Under one roof

The YOND service and commercial building is all about flexibility, individuality, and innovation – attributes that perfectly describe the tenant structure as well. A tight-knit community has formed in the year since the first tenant moved in.

Swiss Prime Site Swiss Prime Site Immobilien Infrastructure Stakeholder

Spaces that can be adapted to meet the needs of tenants, broad common areas that create an open and inspiring atmosphere, as well as reduced, attractive architecture that makes an elegant addition to the local surroundings. This is YOND. An urban development for service companies, creative and commercial professionals, start-ups, and technology firms in a variety of industries. Step off the number 3 tram directly in front of the building at Albisriederstrasse in Zurich, and the first thing you notice is the striking facade with its extensive glass surfaces extending the entire height of the rooms (5.5 metres) on each of the building’s four floors. YOND is made up of six cubes connected by verdant courtyards and pedestrian bridges. Public pathways lead through the site for a livelier setting. 

Flexibility and a wide range of services
«YOND was designed for the working world of today and tomorrow», explains Britta Richli, who is Asset Manager at Swiss Prime Site Immobilien and has been involved in the project from the beginning. Both the architecture and the interior concept, which features modular elements, optional walls, and intermediate floors, allow for a flexible configuration of the spaces and hybrid use. «No matter whether the spaces are used for work or conferences, showrooms, workshops, casual interaction or break areas, they can always be quickly and easily modified to meet the needs of our tenants. All of this is complemented by a full range of real estate services, such as cleaning, wifi in the common areas, mail delivery and collection, as well as booking of external meeting rooms, including catering.»

Sharing is caring
As well as a flexible, attractive infrastructure and a wide range of services, there is one thing that today’s working world requires above all: connectedness through and through. «YOND brings different companies and industries together in one place. Our vision was to build a community that brings synergies to light or creates new ones that ultimately lead to new partnerships and, ideally, new business relationships.» Swiss Prime Site Immobilien is on the right path with this project, a fact that becomes clear when you look at its actions to date as well as the individual companies’ commitment to building the community. 

«Our vision was to build a community that brings synergies to light or creates new ones that ultimately lead to new partnerships and, ideally, new business relationships.» 

«For example, the YOND community has been coordinating with us to organise different food trucks each day. All we needed to do was make the space available. And our tenant Lokales Wasser 37, which has put its second filling point into operation at YOND, is supplying the YOND community with fresh drinking water sourced from the Uetliberg by installing a fountain on the site. The company Grainglow makes vegan delicacies on site and offers them directly at YOND’s own selling point. Another example is the lunch service offered by Tadah. The start-up, which provides co-working spaces including childcare organises the ordering of Poké Bowls for YOND employees and provides its areas as pickup stations. When picking up lunch, the exchange and networking is guaranteed. It’s fantastic to see how the community organises on its own. That only works, of course, when you have the «right» tenants. And those are exactly who we’ve found», says Britta Richli.    

The tenant Lokales Wasser 37 is supplying the YOND community with fresh drinking water sourced from the Uetliberg by installing a fountain on the site.

The company Grainglow makes vegan delicacies on site and offers them directly at YOND’s own selling point.

The start-up organises the ordering of Poké Bowls for YOND employees and provides its areas as pickup stations. 

A blend of architecture, technology and services
What does it take to build this kind of community? Richli puts it in a nutshell: «Connecting space and technology, sharing information, and organising the complete range of services to meet customers’ needs. That includes virtual spaces in particular. Those are the basic criteria for a functioning ecosystem. To offer our tenants the best possible user experience, we developed the YOND app.»

Digital and functional
The YOND app is an interactive platform that allows all tenants to share information and communicate. Likewise, many of the tasks involved with using the property can be handled digitally. Meeting rooms can be reserved with a simple tap, and all requests can be communicated directly to the property managers or whoever else is responsible. The community members can interact using the chat feature and publicise their events along with news and offers. They can also open the main doors or underground car park at the tap of a button. That means tenants don’t need a badge or key to get into the building and can simply use their smartphone instead.

«The platform is already seeing a lot of use. The tenants’ posts receive many responses and positive comments. A shared interest for what others in the community are doing strengthens our vision, which is to create a fertile ground for collaboration», says Britta Richli. Swiss Prime Site Immobilien developed the YOND app in collaboration with the real estate service provider Wincasa and its subsidiary streamnow. The site’s management company fosters the virtual community and sets content highlights.

Architectural award and intense interest
The overall concept of YOND has attracted a lot of interest in the industry. The project has enjoyed good coverage in the media and been well-received by its customers. «That’s affirming in every sense. It looks like we’ve struck a chord and that YOND entered the market at the right time», says Britta Richli. Designed by SLIK Architects, YOND was completed in 2019. This year the property received the «best architects» gold award in the commercial/industrial buildings category.

Ecology

Swiss Prime Site is aware of its responsibility when it comes to climate protection and has been committed for some time to contributing towards the 2-degree goal of the Paris Climate Accord and the Swiss Federal Council’s climate neutrality goal. Taking both these targets into account, in 2019 the Company developed a CO2 reduction pathway for the whole property portfolio. Swiss Prime Site plans to invest around CHF 650 million by 2050 to ensure that the group can also reach the long-term objective of climate neutrality.
 

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«Our proprietary ESG analysis indicates Swiss Prime Site as one of the favoured companies in the future, as the company makes big efforts to reduce its ecological footprint. The planned strategic steps will help further to im­prove the sustainability of the portfolio and avoid potential future costs (e.g. CO2 taxes).»

Pascal Boll
Equity Research Analyst Stifel Schweiz

You can find Swiss Prime Site’s
key strengths here.

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Swiss Prime Site is aware of its responsibility when it comes to climate protection and has been committed for some time to contributing towards the 2-degree goal of the Paris Climate Accord and the Swiss Federal Council’s climate neutrality goal. Taking both these targets into account, in 2019 the Company developed a CO2 reduction pathway for the whole property portfolio. Swiss Prime Site plans to invest around CHF 650 million by 2050 to ensure that the group can also reach the long-term objective of climate neutrality.

More information on group-wide procedures can be found in the Environmental Policy.

Property portfolio focus

The focus of the CO2 reduction pathway lies on the energy consumption of the property portfolio. By comparison, the CO2 emissions from the Services segment are negligible (8.8% of total emissions in the reporting year). As Swiss Prime Site’s property portfolio is comparatively young and technologically advanced, energy consumption and CO2 emissions are already relatively low.

In the reporting year, Swiss Prime Site’s Sustainability Board further tightened the reduction target for the property portfolio. The aim is now to achieve climate neutrality in the operation of the portfolio by 2040. The current CO2 reduction pathway (plan as at 31.12.2020) factors in Scope 1, 2 and 3 emissions and is based on investment costs of around CHF 610 million for cladding renovations and CHF 40 million for heating replacement measures. As the illustration below shows, Swiss Prime Site is thus significantly exceeding sector-specific reduction scenarios and is making a significant contribution to achieving the goals of the Paris Climate Accord. However, the reduction pathway shows that the climate neutrality target will require further measures. The efforts intensified in the reporting year form the basis on which to move the plan further in the direction of climate neutrality. The plan will be regularly updated and published as part of annual reporting.

The standards for development projects and full renovations of existing properties necessary to achieve the current CO2 pathway have applied since the reporting year and are set out in detail in the Integrated Report 2019. Detailed information on the calculation methodology can be found in the CO2 accounting concept.

CO2 reduction pathway property portfolio and climate goal 2040

Measures in the reporting year

In order to plan the measures covering the three action areas – energy, heat and cladding renovation – holistically and co-ordinate them with each other, in the reporting year Swiss Prime Site integrated the requirements of the CO2 reduction pathway into the property strategies for each individual property in the portfolio. This puts the evaluation of the measures required for the reduction in the context of other key aspects of the property strategy (e.g. market potential, structural condition, renovation cycle) and ensures a holistic perspective on the further development and optimisation of the portfolio. This enables Swiss Prime Site to plan upcoming investments with a long-term focus and in a targeted manner. However, this means that the requirements in all affected business areas have to be taken into account and all those involved along the process chain – from acquisition to development and construction and through to portfolio and asset management – need to be made aware of them. Accordingly, in the reporting year the employees of Swiss Prime Site Immobilien and representatives of Wincasa received training informing them about the relevant process requirements.

In addition to the major strategic CO2 reduction pathway project, the other group companies are also endeavouring to reduce their own ecological footprint.

More information on this can be found in the GRI Report.

Employees

The success of the Swiss Prime Site Group is founded on highly competent and committed employees. They contribute their knowledge and ability to develop sustainable living spaces and render high-quality services. Swiss Prime Site entrusts them with important responsibilities and offers an attractive working environment characterised by flexible working-time models and comprehensive training and development opportunities. In doing so, Swiss Prime Site hopes to strengthen employee loyalty and ensure a strong customer focus across all processes.
 

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«After several years at Wincasa, I can now contribute my knowledge to facility management at Swiss Prime Site and in turn I can learn from my colleagues every day. Learning and developing within the Swiss Prime Site Group offer exciting prospects.»

Michael Strebel
Asset Manager Swiss Prime Site Immobilien

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for employees at Swiss Prime Site

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The success of the Swiss Prime Site Group is founded on highly competent and committed employees. They contribute their knowledge and ability to develop sustainable living spaces and render high-quality services. Swiss Prime Site entrusts them with important responsibilities and offers an attractive working environment characterised by flexible working-time models and comprehensive training and development opportunities. In doing so, Swiss Prime Site hopes to strengthen employee loyalty and ensure a strong customer focus across all processes.

More information on group-wide procedures can be found in the Code of Conduct for employees.

Leadership programme

The leadership programme is an important pillar of the group-wide roadmap to achieve these objectives. The programme has been running since 2017 for all employees in management roles in the Swiss Prime Site Group. It gives talent in all group companies and roles the opportunity to develop into leaders or to develop further as leaders. The programme establishes a common understanding of leadership and encourages mutual dialogue beyond the boundaries of the individual group companies. The Company also uses cross-group events, job rotations and interdisciplinary collaboration to strengthen knowledge transfer, networking, team-building and an understanding of changing customer requirements. In the future, Swiss Prime Site will strive to gather customer feedback more systematically and use it to develop training and development packages.

Real Passion 4 Real Estate

In addition to supporting employees with high potential, Swiss Prime Site prioritises helping young talent to enter the real estate business. As part of the traineeship programme «Real Passion 4 Real Estate», every year four graduates gain a detailed insight into the exciting world of real estate. Over 18 months at Swiss Prime Site, they learn about the different facets throughout the whole real estate life cycle. The aim is for the participants to gain experience, enhance their skills and establish the foundation for a successful professional or leadership career in the real estate industry. The programme enables Swiss Prime Site to obtain direct access to new young talent.

In addition to the group-wide programme, the group companies of the Swiss Prime Site Group are continuously investing to improve employee development and retention.

More information can be found in the GRI Report.

Job profile: Asset Manager

The mix of financial work, real estate and personal interaction with different stakeholders makes the role of Asset Manager a highly varied one. Phailin Chotirat gives us an insight into his work.

Swiss Prime Site Immobilien Employees

Thank you for giving us an insight into your day-to-day work.
Phailin Chotirat: It’s my pleasure! But I can’t tell you what a standard working day looks like, because every day is slightly different. That’s what makes my job so exciting – that and the fact that I’m often out visiting our properties, not just sitting at a desk all day.

Tell us a little bit about your main responsibilities.
The aim of my role is to develop and implement property strategies to increase the value and performance of our real estate. In concrete terms, this means ensuring the long-term development of our properties and their position on the market through forward-looking investments, an attractive mix of tenants, or conversion projects.

What exactly do you mean by an attractive mix of tenants?
Our portfolio is mainly made up of commercial properties. When it comes to an office complex like Opus in Zug, for example – which is one of the sites I’m in charge of – the aim is not simply to find another tenant and fill the vacancy as quickly as possible when a tenant moves out. Rather, it’s about working out what kind of tenant will add value to the site and make it more attractive, both for existing customers and for the neighbourhood as a whole. In the case of Opus, we try and get tenants like dentists and supermarkets to take over spaces that become vacant, as they represent added value for the whole site. The same principle also applies to other types of property, such as shopping centres.

Are there situations where vacancies have their advantages?
A vacancy is always a good opportunity to carry out renovations or refurbishments or to adapt the space for a different purpose. In doing so, we always have the property strategy in mind, along with our aim to develop the real estate in a way that is attractive in the long term.

I value our corporate culture, which is based on respect and innovation, and the responsibility I have.

Phailin Chotirat, Asset Manager Swiss Prime Site Immobilien

How do you position your real estate on the market?
We use active marketing. This can be through personal contacts, through my network or as part of a marketing strategy. As an Asset Manager, I develop our marketing activities together with our partners and agencies. I direct the agency and can give my creativity free rein. The fact that I know exactly what our customers need is a huge advantage.

What kind of areas bring you into contact with your colleagues?
When it comes to controlling and reporting processes and the financial valuation of a property, I work mainly with our finance and controlling department. I also support the acquisition and sales team when it comes to assessing properties as part of the acquisition process. I have close contact with the market and our customers in my day-to-day work, which gives me a good idea of the marketability and attractiveness of our properties. The same applies to the development or conversion of properties, which involves us working on ideas with colleagues from the development and construction team.

You’ve talked about working with colleagues within Swiss Prime Site. Do you work with associates outside of the company, too?
We direct external managers, marketers and fiduciaries and ensure that the relevant reports are correct for a given property. We also monitor compliance with the defined budget when it comes to building modifications.

What qualities does an Asset Manager need to have?
They need to be passionate about real estate, have a creative approach to potential uses for properties and a solid business understanding when it comes to key real estate figures. An entrepreneurial mindset and a professional manner are also key, as Asset Managers are in dialogue with a wide range of different stakeholders.

How would you sum up your job as an Asset Manager at Swiss Prime Site?
The mix of financial work, real estate and personal interaction with different stakeholders brings a lot of variety to my role. The fact that I work closely with other departments means I’m also learning new things all the time. I value our corporate culture, which is based on respect and innovation, and the responsibility I have when it comes to managing major assets.

A career within the Swiss Prime Site Group?

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Living spaces

1/2 We create living spaces – sustainably, innovatively and passionately.

Urbanity

1/2 We have an impact on the cities in which people like to work, stay and live.

Ecology

1/2 Our real estate portfolio will become climate-neutral until 2040.

Society

1/2 We encourage communities and connect tenants and employees in our properties.