With a percentage value of 4%, the wider Bern area was underrepresented in PSP Swiss Property’s portfolio in the past. Bern’s real estate market is characterised by a high degree of stability – one of the key factors which is particularly important for PSP Swiss Property. For this reason, the Company expands its presence in the capital city of Switzerland.

Retroactively per January 1^st, 2019, three properties in Bern’s prime location (Bärenplatz 9, 11 and 27 as well as Käfiggässchen 10, 22, 26), close to the federal parliament, were acquired for CHF 48 million. These properties do have a total usable floor space of approximately 3’500 m², mainly for offices and restaurants. PSP Swiss Property will renovate and modernise these three properties in the medium term in order to sustainably increase the yield. Also retroactively per January 1^st, 2019, the so-called “Carba portfolio” in Bern-Liebefeld, valued at CHF 180.5 million, was purchased by a share deal. The portfolio consists of six properties with approximately 36’000 m² of usable floor space; it offers state-of-the-art and representative premises for offices and services as well as attractive commercial space. The “Carba portfolio” is practically fully let and generates a gross yield of 3.9%. The mentioned acquisitions will generate additional rental income in the amount of CHF 7.7 million in 2019.

Contrary, the property located at Bernerstrasse Süd 167/169 in Zurich was sold for CHF 31 million. Furthermore, no referendum was taken against the decree of the Council of the State of Fribourg dated 14 December 2018 to acquire the property at Route des Arsenaux 41 in Fribourg. The sale of this property for CHF 30 million is expected to be completed in February 2019. As a result of the two sales in Zurich and Fribourg, rental income in the amount CHF 2.8 million will be lost in 2019, compared to 2018.

As usual, PSP Swiss Property will communicate a 2019 year-end vacancy guidance and an FY19 ebitda forecast when publishing its FY18 on 26 February 2019.

Finally, PSP Swiss Property sold the last freehold apartment on the Löwenbräu site in Zurich for CHF 5.6 million on 16 January 2019.

One of the six Carba properties

Further information

Adrian Murer, CIO, Phone +41 (0)44 625 55 77 · Mobile +41 (0)76 420 26 27 · adrian.murer@psp.info

Vasco Cecchini, CCO, Phone +41 (0)44 625 57 23 · Mobile +41 (0)79 650 84 32 · vasco.cecchini@psp.info