Expansion and growth
The founding of Swiss Prime Site in 1999 by the Credit Suisse Pension Fund, Siemens Pension Fund and Winterthur Life (today: AXA) laid the foundation for the current real estate portfolio. The value of the real estate holdings grew through acquisitions and significant self-development projects to roughly CHF 3.8 billion (2008) within less than ten years. With the acquisition of the Jelmoli properties in 2009, the Company once again more than doubled its real estate portfolio. Additional key projects such as «Prime Tower» and «SkyKey» in Zurich as well as «EspacePost» in Berne or properties like the Gotthard Building in Lucerne considerably boosted the level of quality and size of the real estate portfolio. Another spurt in growth followed with the acquisition of the three real estate-related services providers Tertianum (2013), SENIOcare (2015) and BOAS Senior Care (2016). The fair value of the real estate held by Swiss Prime Site amounted to CHF 10.6 billion as at the end of 2017.
Swiss Prime Site’s real estate portfolio boasts a high level of quality of property and location, without exception. According to Wüest Partner, roughly 80% of the Group’s properties rank in the quadrants with the highest quality based on the overall market. Such strategic positioning is attributable to the fact that the properties enjoy brisk demand despite the challenging market. The majority of properties (76%) are located in German-speaking Switzerland. In this context, canton Zurich and particularly Zurich City account for the lion’s share in this region with 42%. Another region in the spotlight is Geneva (23%).
Swiss Prime Site has focused its portfolio of high-quality, value-retaining properties situated in prime locations primarily on commercial and services businesses and their needs. Of the total 1.6 billion square metres of available floor space, 40% are leased as office and 32% as retail properties at present. Utilisation of the Company’s real estate by the Tertianum group company already accounts for 7% and will likely increase in the coming years. Entertainment, parking and storage are regarded as additional supplemental types of use. The real estate portfolio’s maturity profile is long term and thus attractive. Roughly 27% of net rental income is generated with rental agreements with a term of ten years or more. Another 31% of the portfolio is subject to renewed leasing at terms of between four and nine years.
Portfolio split by region
Basis: fair value as at 31.12.2017
Portfolio split by type of use1
Basis: net rental income as at 31.12.2017
Vacancy rate in %
Swiss Prime Site succeeded in significantly shrinking the vacancy rate on its real estate holdings (188 properties) in recent years, which amounted to a low 5.2% as at end-2017.