Acquisition

The three directly adjacent commercial properties at Rue de la Confédération 2 (8,100 m² rental space), Rue de la Corraterie 5/7 (5,400 m²) and Rue de la Cité 6 (2,100 m²) were acquired as of 22 September 2020. The commercial buildings are located in a very well frequented location between the banking district, the historic city center and the prestigious Rue du Rhône. The main tenant remains the seller UBS, which will lease back the branch office and the spaces required for its business operations.The remaining space on the ground floor is let to five smaller companies. Within the next two years, UBS will carry out structural works to divide up the areas in the properties. The acquisition is financed by debt at an average of 12 basis points.

Geneva area

PSP Swiss Property considers Geneva's real estate market to be positive in the medium to long term, even if the office market in peripheral areas is currently oversupplied and market uncertainties still exist in connection with the corona crisis. In particular at CBD locations, where the demand is already satisfactory, high quality surfaces should remain promising. The acquisition will further enhance the quality of the Geneva portfolio.

Adjusted ebitda forecast for FY 2020

The impact of the corona crisis on the property sector remains difficult to predict. It is also not yet possible to conclusively assess the impact on our business. It is also unknown whether the corona crisis will worsen in the future. In general, forecasts are therefore subject to a certain degree of uncertainty.

However, the purchase of these three properties has a direct positive impact on PSP Swiss Property's earnings. In addition, the visibility of the condominium sales in the "Residenza Parco Lago" development in Paradiso near Lugano has improved in the meantime. An increased ebitda excluding gains/losses on real estate investments of around CHF 270 million is now expected for the business year 2020 (so far: around CHF 260 million; 2019: CHF 256.1 million).

Geneva, Rue de la Confédération 2 (left) & Rue de la Corraterie 5/7 (right)

Further information

Giacomo Balzarini, CEO · Phone +41 (0)44 625 59 59 · Mobile +41 (0)79 207 32 40

Vasco Cecchini, CCO · Phone +41 (0)44 625 57 23 · Mobile +41 (0)79 650 84 32

Agenda

Publication Q1-Q3 2020 · 10 November 2020

Publication FY 2020 · 23 February 2021

Annual General Meeting 2021 · 31 March 2021

Publication Q1 2021 · 30 April 2021