GECapital and Goldman Sachs are understood to be on the shortlist for the office element of a SFr1bn portfolio put up for sale by Swiss Bank UBS
International investors are vying for a Swiss office investment portfolio as part of a SFr1bn sell-off by Swiss bank UBS.
The bank, which disposed of SFr875m properties in a sale and leaseback deal in 1998, is now disposing of a tranche of residential and office property. UBS is not disclosing the split between residential and offices. The portfolio is not a sale-and- leaseback deal and is understood to be part of the bank’s investment portfolio.
For the transaction, the portfolio has been split into two companies: one housing the residential portfolio and the other holding the office stock. The office portfolio is being offered to national and international investors, but the residential portfolio can only be sold to a domestic investor – under Swiss law, foreign ownership of Swiss residential property is still restricted.
UBS will not reveal the timing off the sell-off but the process is understood to be at shortlist stage, with around four bidders, including Goldman Sachs and GE Capital. Most of the property is in Geneva and Zurich.
“We have had interest from international investors as the Swiss real estate market is growing and GDP is increasing at 3.2%, which is higher than expected,” said Helmuth Aberer, head of structuring secondary markets at UBS, who is heading the sell-off. He added that rents in the main cities were also set to climb.
UBS is being advised by Warburg Dillon Read and Geneva-based property consultant PI Performance Oncor.
The bank’s 1999 transaction was the country’s largest-ever sale-and-leaseback deal and one of the largest deals in Europe that year. Swiss property company Maag Holdings secured the portfolio with backing from its European partners.
