Further partial disposal on the Espace Tourbillon project in Geneva
Since mid-2018, Swiss Prime Site has been working on the major development project «Espace Tourbillon» in the industrial zone of Plan-les-Ouates, Geneva. The site comprises a total of five buildings, has an underground logistics station and offers a total rental space of 95 000 m2. It is aimed at technology and industrial companies as well as SMEs operating primarily in the skilled trade and service sectors. The first two buildings (C and D) of the project were already sold to the Hans Wilsdorf Foundation back in June 2017. Building C was handed over to the new owners in turnkey condition on 15 April 2021. This building, together with building D that is due for completion towards the end of the year, will offer a new, ultramodern workspace for ten social institutions and a start-up cluster. The good progress made on the project resulted in a further partial sale (building E) at the end of April 2021. René Zahnd, CEO Swiss Prime Site: «We were able to use the full spectrum of our development expertise on the major Espace Tourbillon project. We succeeded in providing optimum and innovative spaces for the Geneva region and for future tenants, owners and users, while making a significant contribution to modern and sustainable urban development at the same time. We also successfully launched a new type of product, with commercial condominium ownership, on the same site in building A. 70% of the available space has already been sold or reserved to local companies.»
Sustainable corporate and project financing through «capital recycling»
In the core segment Real Estate, Swiss Prime Site pursues the goal of refining the existing portfolio of prime, value-retaining and attractive properties. The extensive project pipeline has a value of around CHF 1.4 billion and is being continuously enhanced. Land and densification reserves are also being added to the profitable development process. Opportunistic divestments of existing properties or projects also form part of the medium-term strategy of sustainable corporate and project financing, or «capital recycling». René Zahnd, CEO Swiss Prime Site, added: «At the beginning of 2021, we took advantage of the opportunity offered by the market environment and sold a property in the centre of Zurich (Stadelhofen) on extremely attractive terms. In addition, we were able to cover the additional space requirements of an important partner on the Espace Tourbillon project with the sale of building E. This means we have already managed to achieve our annual target for result from sales in the first third of 2021. As planned, we have used the proceeds from the two transactions to self-finance the project pipeline, including Pont-Rouge in Lancy, the second major project in Geneva.»
