Propreal sells fully-leased office asset in central Geneva for CHF 102mn, boosting pan-European war chest to €300mn

GENEVA, 17 May 2022 – Swiss boutique real estate investor Propreal Capital Partners has completed the disposal of a prime office property in the heart of Geneva for CHF 102 million (€99 million) after successfully negotiating a new long-term lease with government-backed Geneva University Hospitals. The buyer was Caisse de Prévoyance de l'Etat de Genève (CPEG), the State of Geneva's Pension Fund. The proceeds of the deal raise Propreal’s war chest to €300 million of available capital to place in pan-European assets.

The 7,070 sqm office space was previously occupied by financial group BNP Paribas which terminated its contract prior to the lease break in November 2026. Located on Boulevard de la Tour 8, the building forms part of a larger condominium (propriété par étages, or PPE), which also includes apartments from the sixth to the ninth floors and was wholly owned by CPEG.

Yves de Kerdanet, Founder and CEO Propreal Capital Partners said: “Our successful restructuring of the existing lease with BNP Paribas brought a government-backed tenant on board for a 20-year term in an office market that is still feeling the after-effects of the Covid-19 pandemic. This paved the way for a deal with CPEG to acquire the property and terminate the co-ownership structure. Altogether this transaction has helped to unlock substantial investment value.”

The office property also comprises 252 sqm of storage area and 48 parking spaces. The new tenant will relocate parts of its administrative facilities to the building following refurbishment works due to be completed in the course of 2022.

Marcus Siggelow, Head of Asset Management at Propreal Capital Partners said: “We had an opportunity to restructure the existing lease and negotiate a new government-backed lease for a 20-year term with the Geneva University Hospitals. This value-enhancing leasing agreement illustrates the quality of the location and the building and we’re now on the lookout for further opportunities to expand our portfolio across pan-European markets. The funds generated from this disposal will enable us to place more capital in other prime pan-European assets.”

Propreal Capital Partners recently raised €150 million for its new closed-end fund PCP European RE Fund I to invest in real estate assets across Continental Europe. The fund is targeting prime and value-add investments across office, hospitality, logistics and retail sectors.

In addition to its home market Switzerland, Propreal is also active in Germany, France, Spain, Portugal and the UK. The company announced in February that it had signed a lease with flexible workspace provider Fora for a 41,100 sq ft (3,800 sqm) office property located on 20Grosvenor Street 20 in Mayfair, London. The transaction at one of Mayfair’s most exclusive addresses is one of the largest lettings in the Mayfair submarket in recent months.

About Propreal Capital Partners

Propreal is an independent real estate investor and asset manager founded in 2012, with a €1.3 billion portfolio of mixed-use properties, hotels, retail and residential-focused projects. The company is focused on unlocking property value in markets such as Germany, Switzerland, Spain, France, Italy and the United Kingdom; targeting urban properties that are identified for their untapped potential.