The official inauguration ceremony for the new «Lancy-Pont-Rouge» railway station in December 2017 laid the cornerstone for PAV’s redesign. Geneva’s city centre is just a six-minute trip away, and there is also a direct train connection five times an hour across the border to Annemasse in France. The «Esplanade de Pont-Rouge» project saw the former industrial area developed into a mixed-use urban centre. The centre is of great importance to the Geneva region because of its character and location: its construction is creating an additional transit and business hub for the city, comparable in importance with Bahnhof Hardbrücke in Zurich-West.

«Alto», a major project by Swiss Prime Site, is positioned in an ideal location at the centre of the action. The building, designed by Geneva architectural practice Brodbeck-Roulet, fits in well with the architectural lines of the emerging urban district, while simultaneously standing out through its design accents. For example, through its innovative interpretation of the façade configuration stipulated in the design plan. Alto’s more refined façade enables significantly better use of daylight in the office space. And thanks to the use of switchable electrochromic glass, no additional sun protection is needed. The glass, which can be dimmed at the push of a button, makes it possible to achieve an ideal internal temperature while providing high light penetration. The centrepiece of the project is an expansive central atrium, which provides a unique and exclusive reception area in a lofty space. This is also reflected in the quality and interplay of the timeless stone, glass and aluminium materials chosen, giving a remarkable overall character to the building. 

«In choosing Alto Pont-Rouge, tenants are securing a building of a very high standard,» says Jorge Guillen, Associate Architect at Brodbeck-Roulet. Because the project is impressive not just for its architecture, but also for its sustainability credentials. Environmental demands on properties have grown enormously over recent years. Firstly, of course, with respect to regulations covering construction and operation. But secondly, due to corporate tenants who bring new demands to bear in relation to sustainability and social responsibility, including for their workplaces. Alto Pont-Rouge is one of the first buildings in Geneva to have been certified according to SNBS (the Swiss Sustainable Building Standard). This label, which is earned after a complex and demanding procedure in several stages that involves all the parties participating in the project, provides unparalleled proof of quality. SNBS takes both the building itself and the context into which it is integrated into account. The standard also enables the needs of society, the economy and the environment to be balanced and considered to the greatest extent possible in the planning, construction and operation of the building.
Along with its winning aesthetics, the Alto Pont-Rouge project also stands out through its social values – in particular through its integration into the local economic fabric, its range of external and internal spaces for coming together and exchanging ideas, the various services offered on site, and its energy efficiency and very low carbon footprint, achieved thanks to high-quality insulation and the use of geothermal heat.

Facts & Figures

• Project: Alto Pont-Rouge, Geneva
• Building contractor: Swiss Prime Site
• Architecture: Brodbeck-Roulet, Geneva
• Utilisation: offices, gastronomy, retail
• Usable floor space: 28,000 m²
• Completion: Autumn 2023, constructed by Implenia AG
• Construction phase: 2020–2023
• Certification: SNBS Gold (Platinum being assessed) 

www.alto-pont-rouge.ch

Buildings account for approximately 40 percent of global CO₂ emissions each year, making them the largest emitter alongside the transport sector and other industries. They have a substantial impact on the environment both during their construction and their subsequent operation. It is therefore essential that the environmental strategy of a real estate company always covers the entire life cycle of a building, so that the effectiveness of eco-friendly solutions can be proven. 

Low-emission operation 
Swiss Prime Site’s property portfolio is geared towards sustainable utilisation. This should be as resource-efficient as possible in order to ensure low-emission operation of buildings over the long term. When it comes to carbon emissions, the goal is always clearly in sight: «net zero» by 2040. Numerous measures are having a big impact in this sense, such as: efficient energy and resource management aimed at reducing consumption and increasing the efficiency of buildings; building strategies aligned with the «CO₂ reduction pathway» (e.g. heat pumps or district heating); procurement of renewable energy; generation and use of own renewable energy (e.g. photovoltaic systems). Swiss Prime Site had already made significant progress by 2022, cutting its CO₂ emissions per square meter by 25 percent compared to 2019. This puts the company well ahead on its initial roadmap for becoming climate neutral by 2040.

Certifications for more transparency in sustainable investing
Swiss Prime Site wants to deliver on its promises to stakeholders and transparency plays a huge role in this. By the end of 2023, nearly all of the company’s buildings will have sustainability certifications from recognised institutes, which will also make the progress measurable. In the case of development projects, each one is already certified. At the same time, it is ensured – particularly through the «Swiss Sustainable Building Standard (SNBS)» – that the buildings are planned and constructed in accordance with the most stringent sustainability standards. For existing buildings in the portfolio, certification is based on the established «BREEAM In-Use» standard to confirm and continuously improve the sustainability and environmental compatibility of the buildings.
Given the high capital injection, borrowed capital is another key aspect for all real estate companies. Like on the investment side, Swiss Prime Site has developed the «Green Finance Framework» to use capital specifically for environmentally friendly projects and thereby connect sustainable investments with corresponding sources of finance. The clear strategy here is to use all significant new funding within the context of the sustainability strategy. This means that funds will be used for specific sustainable purposes related to the financing and promotion of (1) certified real estate, (2) energy efficiency and (3) renewable energy. Investors will therefore be able to have a direct, meaningful and long-term impact on the environment. Here, too, use of the funds will be externally validated to guarantee that the projects meet the highest sustainability standards and achieve the desired goals.

With its comprehensive approach to circular buildings, which considers resources during both construction and operation, Swiss Prime Site fulfils its social responsibility and, thanks to its size, can make a positive and meaningful contribution towards sustainability in Switzerland. At the same time, this strategy also offers investors the opportunity to focus on sustainable investments and make a direct and far-reaching contribution towards environmental protection. 

Unlike a conventional agreement between a property owner and a tenant, a green lease also sets out terms for the sustainable management of the rental space. In addition to establishing their regular rights and obligations in the contract, the landlord and tenant also agree to share the responsibility for sustainability aspects. 

Special characteristics of green leases
Swiss Prime Site has introduced green leases to bring about genuine change and achieve tangible results. In simple terms, a green lease is a commercial lease contract that includes a binding clause setting out specific measures for promoting sustainability and raising awareness of sustainable behaviour among building users and operators. This might include sustainable procurement practices and consumables, environmentally friendly waste management or the creation of suitable habitats to support local wildlife in outdoor spaces. 

SPS consults its tenants and works closely with them on targets and measures. Regular meetings are held, in which both parties can review their progress and set new milestones. Properties can thereby be made more sustainable overall through the efforts of tenants on the operation side and through measures taken by the owner on the infrastructure side. The improvements ultimately benefit both parties.
 

This article was published as part of the NZZ Real Estate Yearbook 2023.

The construction and real estate sectors are responsible for a significant proportion of the CO₂ emissions in Switzerland and throughout the world. As such, efforts to tackle climate change must not only focus on sustainable design of new buildings – where certifications such as the Swiss Sustainable Building Standard (SNBS) and Minergie are already industry standards – but also extend to existing properties. This will allow real estate owners to increase the sustainability standards of their buildings in the long term. One fruitful approach here is the introduction of «green leases».

There is still no single standard that categorises leases as «green» or sustainable. A green lease is a catalogue of measures that define ways in which tenants and landlords can contribute to sustainability within the context of the tenancy. The contract for the tenancy includes corresponding sustainability clauses. This includes improving the CO₂ emissions of buildings. The tenants and users thus benefit from optimisations and the resulting advantages. Including sustainability clauses in leases can help in achieving two goals. First, it increases the market appeal of the property. And second, it improves energy efficiency and consequently reduces ancillary costs.

Green leases are also key to the achievement of climate goals and implementing the net-zero policy by 2050.
 

Swiss Prime Site sets long-term goals and aligns its business model and value creation with those goals. In 2019, a detailed CO₂ reduction pathway was developed for the entire property portfolio. This forecast an influenceable 75% reduction in relative CO₂ emissions (intensity) by 2050 for the approx. 1.6 million square metres of floorspace. In 2020, the Sustainability Committee of Swiss Prime Site further tightened its reduction target for the property portfolio with the aim of achieving climate neutrality in operations by 2040. Meeting this goal will require additional measures, including green leases. 

Karin Voigt, Chief Portfolio Officer at Swiss Prime Site, and Martin Pfenninger, Head Group Sustainability at Swiss Prime Site, discussed the issue of green leases in the podcast «Law on Air». The host was Sibylle Schnyder, a lawyer specialising in the construction and property sector, and partner of the CMS attorney's office. 

How do Swiss Prime Site’s lease agreements already reflect green lease elements?

Karin Voigt: We want to work with tenants to define a shared attitude towards sustainability. We also use leases to govern the exchange of data, the energy efficiency of installed technologies and the use of renewable energy. Our leases already include clauses that address photovoltaic systems, operational optimisation and energy contracting. We also feel it is important to explicitly allow for the purchase of energy from renewable sources. Building management is another important issue. As far as sustainability is concerned, the key points here are cleaning and consistent waste sorting. Sustainability principles are also central to construction measures. Here, we include sustainable materials and promotion of the circular economy. There are many individual things that, taken together, will contribute greatly to achieving the goal. 

Are green leases already standard in Switzerland?

Martin Pfenninger: Swiss Prime Site is a pioneer here. We have set ourselves the goal of climate neutrality by 2040. But other real estate companies also have sustainability right at the top of their agendas. Through an industry working group, we recently defined a number of elements that might form part of a green lease. Green lease contracts are not yet the standard, but hopefully they soon will be. We have already integrated sustainability issues into construction, management and facility management contracts. Rental contracts are an important and logical next step. This sustainable development is a marathon rather than a sprint. It’s something we always need to bear in mind.
 

What advantages does this kind of contract hold for the tenant? We hear the argument that green leases are primarily associated with higher costs …

Karin Voigt: That’s not the case. For one thing, there is a lot you can do without incurring additional costs. This includes the precise and discerning choice of products for building expansion that improves the quality of the accommodation. And we’re also increasing efficiency and the perception of interior quality with clever sensor technology. Nowadays, ESG issues are key in most larger companies. The properties we own are primarily for commercial use. This means that our tenants are companies. They want and have to be climate neutral by 2050. To achieve this goal, you need to pay special attention to sustainability in your operations and in your real estate use. Our green leases fulfil this demand and help tenants achieve their goals. For us, a green lease is a cooperative instrument that brings benefits to everyone involved – a true win-win solution.

Green leases are not as simple to implement with ongoing rental contracts. What is the legal situation there?

Sibylle Schnyder: It’s true, it’s really not very simple with ongoing contracts. If you impose new obligations on a tenant in an ongoing tenancy, it is known as a unilateral contract change and is something you can only carry out on a termination date. You have to communicate this kind of amendment using an officially approved form. But I think in practice, green lease clauses are often added in the context of mutually agreed contract amendments, such as in a lease extension or in connection with other amendments. In this case, the parties agree on new or supplementary contractual provisions. These can then be set down in an addendum to the rental agreement or in a new rental agreement. 

Is the EU now set to boost green leases?

Sibylle Schnyder: We expect that new statutory regulations will boost demand for green leases in the EU. For example, the new Taxonomy Regulation provides for explicit sustainability requirements for the financial sector and listed real estate companies. Green leases could be one instrument for companies to meet these requirements. The European real estate market expects green clauses to become standard in commercial leases with institutional real estate investors over the course of this decade. And this development is likely to be repeated in Switzerland.

Green leases will form the basis for sustainable use of properties in the future. As a pioneer in the real estate sector, Swiss Prime Site has picked up on this issue and derived important measures in the form of green leases. They will help the company and its customers to achieve sustainability goals. Stakeholders increasingly value sustainable rental space. By using green leases, Swiss Prime Site creates additional appeal and it is happy to make this contribution to a liveable, sustainable future.

The construction and real estate sectors are responsible for a significant proportion of the CO₂ emissions in Switzerland and throughout the world. As such, efforts to tackle climate change must not only focus on sustainable design of new buildings – where certifications such as the Swiss Sustainable Building Standard (SNBS) and Minergie are already industry standards – but also extend to existing properties. This will allow real estate owners to increase the sustainability standards of their buildings in the long term. One fruitful approach here is the introduction of «green leases».

There is still no single standard that categorises leases as «green» or sustainable. A green lease is a catalogue of measures that define ways in which tenants and landlords can contribute to sustainability within the context of the tenancy. The contract for the tenancy includes corresponding sustainability clauses. This includes improving the CO₂ emissions of buildings. The tenants and users thus benefit from optimisations and the resulting advantages. Including sustainability clauses in leases can help in achieving two goals. First, it increases the market appeal of the property. And second, it improves energy efficiency and consequently reduces ancillary costs.

Green leases are also key to the achievement of climate goals and implementing the net-zero policy by 2050.
 

Swiss Prime Site sets long-term goals and aligns its business model and value creation with those goals. In 2019, a detailed CO₂ reduction pathway was developed for the entire property portfolio. This forecast an influenceable 75% reduction in relative CO₂ emissions (intensity) by 2050 for the approx. 1.6 million square metres of floorspace. In 2020, the Sustainability Committee of Swiss Prime Site further tightened its reduction target for the property portfolio with the aim of achieving climate neutrality in operations by 2040. Meeting this goal will require additional measures, including green leases. 

Karin Voigt, Chief Portfolio Officer at Swiss Prime Site, and Martin Pfenninger, Head Group Sustainability at Swiss Prime Site, discussed the issue of green leases in the podcast «Law on Air». The host was Sibylle Schnyder, a lawyer specialising in the construction and property sector, and partner of the CMS attorney's office. 

How do Swiss Prime Site’s lease agreements already reflect green lease elements?

Karin Voigt: We want to work with tenants to define a shared attitude towards sustainability. We also use leases to govern the exchange of data, the energy efficiency of installed technologies and the use of renewable energy. Our leases already include clauses that address photovoltaic systems, operational optimisation and energy contracting. We also feel it is important to explicitly allow for the purchase of energy from renewable sources. Building management is another important issue. As far as sustainability is concerned, the key points here are cleaning and consistent waste sorting. Sustainability principles are also central to construction measures. Here, we include sustainable materials and promotion of the circular economy. There are many individual things that, taken together, will contribute greatly to achieving the goal. 

Are green leases already standard in Switzerland?

Martin Pfenninger: Swiss Prime Site is a pioneer here. We have set ourselves the goal of climate neutrality by 2040. But other real estate companies also have sustainability right at the top of their agendas. Through an industry working group, we recently defined a number of elements that might form part of a green lease. Green lease contracts are not yet the standard, but hopefully they soon will be. We have already integrated sustainability issues into construction, management and facility management contracts. Rental contracts are an important and logical next step. This sustainable development is a marathon rather than a sprint. It’s something we always need to bear in mind.
 

What advantages does this kind of contract hold for the tenant? We hear the argument that green leases are primarily associated with higher costs …

Karin Voigt: That’s not the case. For one thing, there is a lot you can do without incurring additional costs. This includes the precise and discerning choice of products for building expansion that improves the quality of the accommodation. And we’re also increasing efficiency and the perception of interior quality with clever sensor technology. Nowadays, ESG issues are key in most larger companies. The properties we own are primarily for commercial use. This means that our tenants are companies. They want and have to be climate neutral by 2050. To achieve this goal, you need to pay special attention to sustainability in your operations and in your real estate use. Our green leases fulfil this demand and help tenants achieve their goals. For us, a green lease is a cooperative instrument that brings benefits to everyone involved – a true win-win solution.

Green leases are not as simple to implement with ongoing rental contracts. What is the legal situation there?

Sibylle Schnyder: It’s true, it’s really not very simple with ongoing contracts. If you impose new obligations on a tenant in an ongoing tenancy, it is known as a unilateral contract change and is something you can only carry out on a termination date. You have to communicate this kind of amendment using an officially approved form. But I think in practice, green lease clauses are often added in the context of mutually agreed contract amendments, such as in a lease extension or in connection with other amendments. In this case, the parties agree on new or supplementary contractual provisions. These can then be set down in an addendum to the rental agreement or in a new rental agreement. 

Is the EU now set to boost green leases?

Sibylle Schnyder: We expect that new statutory regulations will boost demand for green leases in the EU. For example, the new Taxonomy Regulation provides for explicit sustainability requirements for the financial sector and listed real estate companies. Green leases could be one instrument for companies to meet these requirements. The European real estate market expects green clauses to become standard in commercial leases with institutional real estate investors over the course of this decade. And this development is likely to be repeated in Switzerland.

Green leases will form the basis for sustainable use of properties in the future. As a pioneer in the real estate sector, Swiss Prime Site has picked up on this issue and derived important measures in the form of green leases. They will help the company and its customers to achieve sustainability goals. Stakeholders increasingly value sustainable rental space. By using green leases, Swiss Prime Site creates additional appeal and it is happy to make this contribution to a liveable, sustainable future.

Swiss Prime Site is aware of its responsibility when it comes to climate protection and has been committed for quite some time to contributing towards the 1.5-degree goal of the Paris Climate Accord and the Swiss Federal Council’s climate neutrality goal for 2050. To that end, in 2019 the Company developed a CO₂ reduction pathway for the entire property portfolio and strengthened it further in the reporting year. Swiss Prime Site is using active management principles to implement a reduction pathway well below the 1.5-degree scenario. By 2040, around CHF 650 million will have been invested in achieving climate neutrality over that period for the whole property portfolio. In addition to investments in renewable energies, the majority of the expense will be in building renovations. At the same time, resources will be invested in measures to replace heating systems. In this way, the Company is taking its own steps to reduce emissions as far as possible. Where there are the anticipated unavoidable emissions, we will evaluate additional measures outside the property portfolio to achieve its climate neutrality by 2040.

More about the reduction pathway

The Akara Group was founded in 2016 and has since evolved into a FINMA-regulated fund provider with a focus on residential and commercial real estate. The group employs around 50 real estate specialists and offers real estate services in the areas of development, realisation, management and marketing. The real estate assets under management, amounting to around CHF 2.3 billion, comprise a real estate fund for tax-exempt pension funds, a private equity product for qualified investors, and a development pipeline of more than CHF 240 million.

The plan is to integrate the Akara Group into Swiss Prime Site Solutions during the course of the 2022 financial year and to merge the two fund management companies. Through the planned merger, Swiss Prime Site Solutions will grow into one of the leading Swiss real estate asset man­agers, with real estate assets under management (including development pipeline) of more than CHF 6.5 billion and an expected EBIT contribution of CHF 27–28 million in 2022. The acquisition will enable Swiss Prime Site Solutions to increase its customer base considerably and to expand the existing investment platform with additional product and fund categories, such as real estate private equity investments.

More about the AkARA Group