Consultancy
Consultancy
We advise our clients comprehensively, evaluate opportunities and risks, and develop customized, sustainable strategies for direct and indirect real estate investments.
Always with a long-term focus, continuity, and risk awareness.
Analysis
Analysis
For over 30 years, we have been analysing the Swiss real estate market and its investment products.
In addition to quantitative aspects, qualitative factors such as management principles, cost discipline and the creation of long-term added value play a significant role.
Strategy
Strategy
We assess your real estate portfolio, evaluate and create holistic and sustainable strategies and support you through the implementation process.
We facilitate strategic partnerships and generate synergies for additional development and value enhancement potential.
Networking
Networking
Thanks to many years of experience and the network we have built up as a result, synergies and connections are created between property owners, investors, asset managers and service providers.
With this approach, we built bridges between direct and indirect property investments, private and institutional investors as well as between French- and German-speaking Switzerland for our clients.
Mandates
Mandates
We develop a suitable real estate strategy for you on a mandate basis.
The continuous personal dialogue ensures the ability to respond to changing preferences or market situations at any time. This can also take the form of participation in bodies such as investment committees, boards of directors or trustees.
Sustainability
Sustainability
Our proprietary sustainability model allows us to evaluate all listed and non-listed Swiss real estate products (stocks, funds, investment foundations) and provide institutional investors with sustainability reporting.
With the Swiss Sustainable Real Estate Index (SSREI), a standard for assessing the sustainability of the Swiss building stock was launched as well.
Market Commentary October 2024
After a quiet September with no noteworthy news, the year is moving into its final phase. However, several important decisions could directly or indirectly impact the real estate market...
Market Commentary October 2024
After a quiet September with no noteworthy news, the year is moving into its final phase. However, several important decisions could directly or indirectly impact the real estate market. The upcoming U.S. elections are influencing global stock markets, and expectations for another rate cut by central banks have largely been priced into international stock prices. A significant factor for Swiss real estate funds could be the potential reduction of the reference interest rate for rent determination, which may occur in December or next spring. In the short term, various political decisions will likely shape developments until year-end, especially the national and cantonal referendums in November. Parliament recently revised rental laws concerning subletting and evictions for personal use - a decision positively received by the real estate sector from a property owner’s perspective. In Zurich, the popular initiative "Affordable Housing for Zurich" calls for more capital to enable the city and its housing foundations to acquire additional properties and land. Given Switzerland’s rapidly declining vacancy rates, a revision of private interest objection regulations would also be desirable. Recent results from some real estate funds show an alignment of discount rates used, which increases the importance of each fund manager’s value-creation measures for sustainable performance. Investor demand has risen since late summer, leading to new capital increases each month.
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Market Commentary September 2024
It took three years for real estate funds (Swiit Index) to regain their price levels from the summer of 2021. At that time, the SARON rate was at -0.70%, and the yield on 10-year...
Market Commentary September 2024
It took three years for real estate funds (Swiit Index) to regain their price levels from the summer of 2021. At that time, the SARON rate was at -0.70%, and the yield on 10-year government bonds was at -0.30%. With the current premiums of 35%, many funds, primarily in the residential sector, have once again reached high levels. In 2021, refinancing mortgage debt was easy, but today this task has become much more difficult. The UBS-CS merger and the situation with cantonal banks are not helping improve the environment. Financing margins, which were at 0.5% in 2021, have since risen to around 0.8%. Rental income has increased after two hikes in the reference interest rate and adjustments for inflation, although this rate could fall again in the spring of 2025. Given the rising demand for real estate investments, some managers are seizing the opportunity to carry out new capital increases. But will they actually invest or simply reduce debt? It has become more difficult to find AAA properties at attractive prices, forcing investors to focus on assets where value can be created through active management. In 2021, Olivier Metzenthine (JLL) published an article on the conversion of office buildings in Geneva, emphasizing the importance of operational and economic feasibility for the success of such projects. AXA AM is trying to follow this approach and will present its strategy at the "Breakfast Immobilier" hosted by MV Invest in Geneva. Another strategy is to hold land, as the housing shortage in Switzerland becomes increasingly critical. INA Invest has shown how this can work. Together with major investors like Implenia and the Buhofer family, INA and the Cham Group are discussing a potential merger. Combined, their portfolio would reach over CHF 3 billion. With active management, no capital increase would be needed to complete the projects. However, INA and Cham are currently being traded at prices that are 10 to 20% below their NAV, despite significant value potential. Why are so many investors pouring money into funds with no potential and premiums over 35%, especially when this example is not unique? It remains a mystery.
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Market Commentary August 2024
The summer holidays are over, and the strong Swiss franc is prompting the Swiss National Bank (SNB) to maintain its current course...
Market Commentary August 2024
The summer holidays are over, and the strong Swiss franc is prompting the Swiss National Bank (SNB) to maintain its current course. Further rate cuts in September, and possibly again in December, are anticipated. There are even voices suggesting a negative interest rate scenario by the end of 2025. Real estate managers, who have been unable to conduct capital increases over the past two and a half years, are gradually returning and attempting to acquire new capital. For a fund with a premium of 30 to 50%, raising capital is relatively easy. However, the question arises whether these funds can be efficiently allocated. The local real estate market appears to be dried up, as reported by the industry. It is evident that not all investors have the opportunity to acquire high-quality properties. This makes it all the more important to recognize the added value of properties and to maximize their potential in terms of both performance and sustainability year after year. Creating added value through active management is essential since investors are paying management fees, not just administrative fees. Dynamic strategies and greater foresight are needed. The topic of sustainability is often misunderstood. Investors should not expect sustainability to immediately lead to better performance. Instead, sustainability should be viewed as a fundamental requirement for securing the long-term, risk-adjusted performance of a portfolio. Regardless of where the focus lies, it is crucial to ensure transparency and comparability. In the past two years, managers have been preoccupied with financing issues and potential redemptions, rather than proactively creating added value. As a result, the market has recently been dominated by opportunistic investors such as family offices. A bit more activism on the part of real estate investment vehicles would therefore be desirable.
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Our team for your goals.
Expertise, passion, and anticipation lay the foundation for us to fully focus on your needs
Roland Vögele
CEO
+41 43 499 24 90
Sacha Deutsch
Senior Advisor
+41 43 499 24 91
Ulrich Kaluscha
Senior Advisor
+41 43 499 24 96
Raphael Schuler
Client Relations Manager
+41 43 499 24 92
Remo Burri
Investment Analyst
+41 43 499 24 94
Leonie Eberhardt
Event/Marketing Manager
+41 43 499 24 89
Debora Zgraggen
Event/Marketing Manager
+41 43 499 24 97
Elodie Gadola
Event/Marketing Manager
+41 43 499 24 93
Elvira Bieri
Chief Sustainability Officer
CEO SSREI AG
+41 43 499 24 99
