New real estate strategy

The starting point

In 2015, the bank Lombard Odier & Cie (LODH) launched the implementation of a new real estate strategy, i.e. the project to relocate all activities of the bank under one roof. After a pitch consultation, SPG Intercity obtained a consultancy mandate in order to determine the “commercial attractiveness” of the different properties of the bank. The purpose was to anticipate the strengths and weaknesses of these properties and also to anticipate a future disposal strategy.

The solution

In order to determine the “commercial attractiveness” of the portfolio, we implemented the following methodology:

The result

After this analysis of the portfolio, LODH took the decision to go forward with its strategy and launched the search of suitable plots of land, able to accommodate a minimum surface of 30’000 sqm. SPG Intercity has been mandated for this acquisition mandate and proceeded to the search and analysis of various relocation alternatives with the following tasks: collection of information, valuation, feasibility (building permit, timing, process), comparison of projects according to various factors such as price, access, timing, project efficiency, design etc. After a 12-month process, LODH acquired a plot of land in Bellevue, which will host all bank activities within next 4 years.

Finally and after the acquisition of the Bellevue site, LODH mandated SPG Intercity in order to sell the existing Lombard Odier portfolio consisting into 5 sites. The disposal strategy has been set up according to the initial portfolio analysis and the real market conditions at the time of the sales process. After a 5 month process, the entire portfolio has been sold to a Swiss institutional investor according a leaseback transaction.

The added value
In this entire process, SPG  Intercity brought its deep knowledge of the Geneva real estate market and its network in order to get market information and opportunities. This allows LODH to have many suitable relocation alternatives and therefore to have a good negotiating position. Furthermore, knowing in details the future conditions of the relocation allows to elaborate a tailor-made leaseback contract in line with the development project schedule.