30 March 2001
The move by Swisscom to dispose of parts of its real estate portfolio is aimed at allowing the company to focus on its main business activities. Swisscom communicated its intention to dispose of 28 shop and office premises to a consortium led by Credit Suisse Asset Management on 2 March 2001. As announced, the two transactions, involving a total of 190 buildings, will generate a post-tax profit of around CHF 500 million.
PSP Swiss Property Group will provide property management services for the portfolio on behalf of WTF Holdings (Switzerland) Ltd. Swisscom Immobilien AG will continue to provide the technical and infrastructure facility management for the properties in question working with PSP Swiss Property Group. The transfer of the 162 properties is scheduled to be completed by the middle of this year. Swisscom will rent back around 55% of the rentable area of the buildings. The disposal of the 162 buildings involves two legally separate transactions.
PSP Real Estate Ltd, a fully owned subsidiary of PSP Swiss Property Ltd, will acquire a portfolio of 22 properties for around CHF 400 million. The portfolio comprises shop and office premises, some of which are used for technical purposes. The total rented floor space amounts to 177,000 square metres. In terms of value, 75% of the properties are located in the regions of Zurich, Lausanne and Geneva. PSP Management Ltd, a fully owned subsidiary of PSP Swiss Property Ltd, will be responsible for the property management.
The portfolio of 140 properties to be purchased by the newly founded WTF Holdings (Switzerland) Ltd, which is 80% owned by Lehman Brothers Real Estate Partners and 20% by PSP Swiss Property Ltd . The properties, with a total rented floor space of 762,000 square metres, mainly comprise offices with some premises used for technical and logistics purposes. The properties are located throughout Switzerland.
PSP Swiss Property Group is one of the leading property companies in Switzerland, with a portfolio valued at CHF 1.5 billion in the best locations in the Swiss economic centers. PSP Swiss Property Group manages its own properties as well as properties owned by third parties valued at more than CHF 9 billion. Following this acquisition, PSP Swiss Property Group holdings will exceed CHF 2 billion and assets under management will exceed CHF 10.5 billion. PSP Swiss Property Group has seven offices throughout Switzerland and around 160 employees. (PSP Swiss Property Ltd, SWX: PSPN)
Lehman Brothers Real Estate Partners (LBREP) is a global real estate merchant banking fund formed by Lehman Brothers to make equity investments in real estate, primarily in North America and Western Europe. Lehman Brothers (NYSE: LEH), an innovator in global finance, focuses on serving the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private equity and private client services. The Firm is headquartered in New York, London, and Tokyo and operates in 44 offices around the world, including Zurich.
Berne, 30 March 2001