• Offering of new shares for an amount of up to circa CHF 300 million in gross proceeds via an accelerated bookbuilding, equalling up to circa 4% of currently issued shares
• The capital increase will allow Swiss Prime Site to pursue profitable growth opportunities whilst maintaining a strong balance sheet
• Attractive and tangible acquisition pipeline of yielding properties underway with expected rental income of more than CHF 17 million per annum
• The net proceeds from the offering are expected to be deployed within the next 9-12 months; the transaction is expected to be accretive to Funds from Operations I (FFO I) per share upon full deployment and to NAV immediately
Swiss Prime Site today announces the launch of an accelerated bookbuild offering (“Offering”) of new registered shares ("New Shares") for an amount of up to circa CHF 300 million in gross proceeds. The New Shares will be sourced from the existing capital band and correspond to up to circa 4% of currently issued shares.
The current state of the commercial Swiss real estate market is characterized by strong demand for high-quality letting space, especially in the economic centers Zurich, Geneva and Lausanne across office and retail as well as other segments. The demand is supported by a growing economy with continuous influx of highly skilled employees. The sharp decrease in both short- and long-term interest rates over the course of the second half of 2024 is also expected to lead to strong capital inflows into the real estate sector and thus to increased activity in the transaction markets.
Swiss Prime Site is optimally positioned to benefit from such positive developments: On the one hand, its fast-growing Asset Management segment is expected to directly realise earnings from additional new funds as well as from increased transaction activity. On the other hand, and as announced on 6 February 2025 as part of the results communication for the financial year 2024, Swiss Prime Site currently sees additional opportunities for earnings- and NAV-accretive property acquisitions for its own portfolio. The Company actively manages a tangible pipeline of transaction processes which, pursuant to current estimates, collectively are expected to generate annual rental income of more than CHF 17 million. The identified properties are all yielding, centrally located in major Swiss cities and encompass sought-after office buildings of highest quality and sustainability standards. Negotiations of some of the transaction processes are exclusive.
The Offering will provide Swiss Prime Site with additional capital to realize the aforementioned acquisition pipeline – in parallel to its continuous project developments – whilst maintaining its strong balance sheet with a Loan-to-Value ratio below 39%, as guided for the financial year 2025.
The net proceeds from the Offering are expected to be deployed for property acquisitions within the next 9-12 months; they may be used for general corporate purposes within this timeframe. The transaction is expected to be accretive to Funds from Operations I (FFO I) per share upon full deployment and accretive to NAV immediately.
The Offering will commence immediately following the release of this announcement. The placement price of the New Shares as well as the number of New Shares to be issued will be announced upon completion of the bookbuilding process, which is expected prior to market opening on 25 February 2025.
Consistent with the capital band authorizations in Swiss Prime Site’s Articles of Association, the capital increase will consist of an Offering at market conditions in an expedited manner – thus excluding statutory subscription rights for existing shareholders – to qualified investors in Switzerland and abroad pursuant to the respective securities laws.
Swiss Prime Site agreed to a lock-up expiring 180 calendar days after the listing of the New Shares, subject to customary exceptions.
The New Shares will rank pari passu with the existing shares and carry full dividend rights upon settlement, including for the financial year 2024. The Board of Directors has proposed an increased dividend of CHF 3.45 per share to the Annual General Meeting scheduled to be held on 13 March 2025, with payment expected on 25 March 2025.
The New Shares are expected to be listed and admitted to trading on SIX Swiss Exchange on 26 February 2025. Payment and settlement is expected to take place on 27 February 2025.
For more information, please follow this link: Placement
If you have any questions, please contact:
Investor Relations, Florian Hauber
Tel. +41 58 317 17 64, florian.hauber@sps.swiss
Media Relations, Patrick Djizmedjian
Tel. +41 58 317 17 42, patrick.djizmedjian@sps.swiss