Anastasius Tschopp, CEO/CIO, Swiss Prime Site Solutions, in interview
Moneycab.com: You have increased cumulative revenue from CHF 3.4 million in the prior year’s period to CHF 8.8 million. You generated more revenue in the first half of 2019 than in the whole of the previous year. What will revenue be like in the second half of the year?
Anastasius Tschopp: At a group company level, we don’t issue any information on revenue. However, we are expecting to carry out another bond issue and transactions for our client Swiss Prime Investment Foundation. We are confident that we will continue to grow.
„Over the course of 2019, we were able to conduct several transactions, acquiring 24 ideal properties totalling more than CHF 500 million for our client’s portfolio.”
Anastasius Tschopp, CEO/CIO, Swiss Prime Site Solutions
In April, you carried out a fourth bond issue for the Swiss Prime Investment Foundation for a total of CHF 180 million. You mentioned a fifth issue. When will this take place and how large will it be?
We cannot speak for our client Swiss Prime Investment Foundation. However, we are anticipating an issue in late autumn. Swiss Prime Investment Foundation will provide more details about the amount closer to the time.
In January, you concluded transactions on behalf of your client Swiss Prime Investment Foundation for 14 properties totalling around CHF 245 million and, in June, another 13 properties totalling around CHF 300 million. Can you tell us more about them?
Our client is building on their significant project pipeline of around CHF 500 million and on transactions relating to existing properties. The latter presented good opportunities at the end of 2018 and in 2019, which we were able to carry out in accordance with Swiss Prime Investment Foundation’s strategy. Over the course of 2019, we were able to conduct several transactions, acquiring 24 ideal properties totalling more than CHF 500 million for our client’s portfolio.
You have made acquisitions across a wide geographic area. Is there not a risk of a real estate bubble?
We don’t think there is any overheating in the market at the moment. The demand for office, industrial and commercial space is the result of the current positive economic situation in Switzerland. Immigration levels remain constant, so there is solid residential construction activity.
Presumably, you are regularly offered properties for sale. What’s the lowest gross yield that you will accept?
Fundamentally, we want transactions to create value and increase portfolio yields. There may be exceptions where we carry out transactions for clients that are slightly below the current portfolio yield. However, it has to involve real estate in a unique location that demonstrates further market potential.
„If you are patient, know the market well and have a strong network, there are always opportunities.”
How do you assess the market from the perspective of a commercial property buyer? Where can you still find good properties and which regions are showing particularly good growth?
If you are patient, know the market well and have a strong network, there are always opportunities. It’s important that there are short decision-making processes within your own organisation and that the client can also react quickly.
What’s the competition situation and what advantages do you have over the competition?
We have become one of the largest real estate asset managers in Switzerland. We have competitors, obviously, and we know that. However, we believe that our range of services and the significant expertise within the company sets us up well for future growth.
„We want to increase our assets under management from its current level of CHF 2.2 billion to between CHF 3 and 4 billion.”
What are your goals with Swiss Prime Site Solutions for the next three to five years?
We want to use our existing product to increase the portfolio for our client Swiss Prime Investment Foundation and therefore our assets under management from its current level of CHF 2.2 billion to between CHF 3 and 4 billion. We will also work intensively on new products to be introduced in that time frame and, naturally, win more clients. More details on that when it happens.