The Capvis Equity V LP fund advised by the Swiss private equity company Capvis AG (jointly «Capvis») agreed to purchase the Tertianum Group from Swiss Prime Site. The purchaser is a leading investment company in Europe with a strong track record as an investor. The purchase agreement encompasses the operation of over 80 residential and care centres as well as residences distributed throughout Switzerland. «As the Swiss market leader for elderly care and assisted living, Tertianum is a unique healthcare services platform. We recognise the entrepreneurial performance of the management and the current owners and look forward to further strengthening Tertianum together with the management and expanding it through additional services», explains Boris Zoller, Partner at Capvis AG. The Tertianum Group has around 4 700 employees who will transfer to the new owner along with existing management. The properties of Swiss Prime Site will remain in its ownership and continue to contribute to the balanced diversification of its property portfolio. René Zahnd, CEO Swiss Prime Site: «We are very pleased that we have managed to sign the sale in 2019 as planned. Capvis is the optimal new owner for the Tertianum Group. The company sees itself as an active partner who will work with the company’s management to unleash the long-term potential.» Luca Stäger, CEO Tertianum Group, adds: «As an established and very well-connected investor with strong Swiss roots, Capvis is exactly the right owner for Tertianum. We are looking forward to working with them.»

The parties have agreed not to disclose the purchase price. Closing of the contract is expected in the first half of 2020.

Focussing of the business model

With the sale of the Tertianum Group, Swiss Prime Site will be able to focus the business model even more on value creation from real estate and related group companies. The funds released by the sale will strengthen the balance sheet and flow into the implementation of previously announced projects currently in the pipeline. Swiss Prime Site will remain in partnership with Tertianum as one of the key tenants in its property portfolio.

Significant profit contribution in the group results of the financial year 2020 expected

With the divestment of the Tertianum Group, the company goes into 2020 with a simplified structure and a stronger alignment on the core business Real Estate. The funds from the transaction will further strengthen capitalisation and will be reinvested in the project pipeline. The EBIT of the Tertianum Group (approx. CHF 30 million) will be offset by contributions from property developments. After the closing of the transaction Swiss Prime Site anticipates a significant profit contribution in the group results of the financial year 2020. Further details on the outlook will be communicated at the annual press conference on 27 February 2020.