After an acquisition in 2005 with a vacancy rate of 40%, our client Area Property Partners wanted to increase the value of their site in order to obtain the best return possible.
The added value provided SPG Intercity by mobilizing its four departments (expertise, leasing, asset management and sales) enabled Area Property Partners to obtain an added value of 50% on the good’s value in 6 years.
This transaction was one of the most significant ones in Geneva in the beginning of 2011.
Given the significant size of the asset, over CHF 100’000’000.-, the strategy involved putting the object “on market” in Switzerland and internationally, and to centralize its activity on big international groups. The difficulty was the structure of the deal: Our client, Area Property Partners, decided to sell stocks of the company owning the building in a so called “share deal” strategy. Consequently, players such as pension funds and others could not consider the deal, and we had to identify buyers, who could do this kind of transaction.
After several months of intense negotiation with the Israeli groups Optibase and Phoenix, the sales agreement was signed during the 1st quarter of 2011 for an amount of CHF 126’500’000, being a return of 7.5%. This transaction was one of the most significant ones in Geneva in the beginning of 2011.