Development and project planning
One of Swiss Prime Site Immobilien’s strengths is its ability to develop its own projects. This paves the way for the Company to operate with a high degree of independence from market cycles.
Development projects are based on the Group’s strategic targets aimed at boosting organic growth and increasing corporate profitability. Earnings from completed projects are realised 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 versus the market as well as the existing portfolio.
The investment volume (including share of land) of Swiss Prime Site Immobilien’s project pipeline amounts to roughly CHF 2 billion as at mid-2019.
Projects under construction
Construction projects comprise an investment volume (including share of land) of roughly CHF 800 million. Overall, eight projects are under construction at present. The most significant investments are being carried out in the large-scale Espace Tourbillon building complex in Geneva. Two buildings of the five structures to be erected were already sold shortly after the construction start date in the second half-year 2017. One building is sold in condominium ownership. Projects under construction exhibit an average net yield that exceeds the current portfolio mean.
Projects in planning phase
Projects were in the planning phase at midyear 2019 with estimated investment volumes (including share of land) of roughly CHF 800 million. The largest individual project of all is Alto Pont-Rouge in Lancy, with a volume of about CHF 280 million. The project plays a significant role for the Geneva region in its form and due to its location, since another transportation juncture and economic hub will be created for the city as a result. In addition, there are four projects in the planning phase respectively already in execution for the construction of new residential and geriatric care centres in Paradiso, Monthey, Richterswil and Olten (Usego site) for the Tertianum group company. Swiss Prime Site Immobilien also holds land reserves that harbour potential investments of more than CHF 400 million in addition to substantial utilisation reserves in its portfolio.