Category: Zug

The ZugerKB – the strong partner for professional real estate investors

In 2020, Zuger Kantonalbank financed over two thirds of all residential units approved for building in the canton of Zug and supported various important major projects in their development. This unrestricted market leadership of Zuger Kantonalbank in the financing of real estate is the result of a range of services that is consistently geared towards the specific needs of real estate investors.
What can professional investors count on at Zuger Kantonalbank?
Our extensive knowledge of the market
Zuger Kantonalbank knows the Zug real estate market better than any other bank. We continuously analyze the development of the real estate market in the canton of Zug very precisely and comprehensively. We work with leading providers of real estate market data. In addition, the close exchange with professional investors in the canton of Zug gives us a valuable view of the market. With this knowledge we can provide you with a lot of important information for the development and planning of your projects: Which apartment sizes are in demand? How is building activity developing? Or what prices are marketable? We answer these and other questions together with the investors in a strategic dialogue. An experienced team of ten specialists is available at Zuger Kantonalbank for this purpose.
Our reliability
The ZugerKB is committed to its customers in the long term, and has been for over 125 years. Our senior consultants are personally at your side and do everything in their power to ensure that your construction project is successfully implemented. With our expertise, we can quickly carry out an initial project assessment and outline possible financing in an early planning phase. As soon as the project becomes more specific, our short decision-making channels allow quick and needs-based financing offers: from the first planning loan to a comprehensive and flexible financing structure.
Our solution orientation
Your construction project is also our project. That is why professional advice is important to us. We make the processing and support of the project as easy as possible for you. In addition, we support promoters along the entire sales process, for example. In addition to the prior plausibility check of the planned sales prices, we offer various sales support. For example, our website www.zugerkb.ch/bauprojekte, which is accessible to everyone, informs interested apartment buyers about future projects and enables a direct link to the websites of the respective providers. We would be happy to show you further sales support in a personal conversation.
To person
Peter Bucher has been Head of Real Estate Investors at Zuger Kantonalbank and a member of the Board of Directors of a listed real estate fund since 2015. The passionate rider and jogger has a profound knowledge of the real estate market in the Zug region.

March 2021
Focus on qualitative development

Zug is one of the most popular economic and living areas. This is proven by numerous studies and rankings. The success is based on a long-term development strategy and attractive framework conditions. Zug offers a unique combination of excellent location factors such as the availability of skilled workers, stability, attractive taxation, central location, quality of life, level of education and economic friendliness.
The Zug business center is dynamic, as evidenced by developments on the real estate market and in the transport infrastructure. The strong presence of value-added industries and service providers as well as a high concentration of high-growth sectors are important for the quality of economic development. The broadly diversified industry structure and the unique mix of small, large, local and international companies are an important driver for the innovative development of the canton. The focus of economic management by the Department of Economics is on the existing and established companies. Their growth makes the greatest contribution to the canton's economic development.
Testimonials
Silvia Thalmann-Gut, member of the government, economics director and governor of the canton of Zug
The canton of Zug offers excellent location conditions for everyone. This includes the "Spirit of Zug" that is lived. The distances are short, the authorities work quickly and efficiently. Zug's success is based on a long-term strategy.
Heini Schmid, lawyer, former Cantonal Councilor and long-time President of Zug Tourism
Zug is in Switzerland what Switzerland is in Europe: small, surrounded by large neighbors and therefore open and adaptable. For us, changes are always an opportunity to do things differently and better. Zug is Switzerland to the power of two; it is the total package that counts.
Matthias Rebellius, CEO Siemens Smart Infrastructure, Chairman of the Board of Directors Siemens Schweiz AG
From Zug, we are driving digitalization at Siemens Smart Infrastructure. For us, Zug is an ideal location for our global headquarters, as we can attract and promote the best local and international talent here.
Johanna Friedl-Naderer, President Europe, Canada & Partner Markets, Biogen
Zug is the hub of our international headquarters. From here we coordinate our operational and administrative activities worldwide. The central location and high quality of life make Zug an attractive location for top talent.
Contact point for the economy of the Canton of Zug
Welcome to the canton of Zug. Our services are aimed directly at you as an entrepreneur. We are your partner and promote Zug as a business location.
Business contact point, Aabachstrasse 5, 6300 Zug, T +41 41 728 55 04, economy@zg.ch
Alberto Diaz, Deputy Ladder; Peter Müllhaupt, jur. Employee; Yvonne Valentino, assistant / back office manager; Ursula Kottmann Müller, Marketing / Communication; Beat Bachmann, Head (from left to right). Photographer: Peter Hofstetter

March 2021
Fundamenta Real Estate posts record profit

According to a release from Fundamenta Real Estate AG , the Zug-based real estate company generated net rental income of CHF 33.47 million in the 2020 financial year. In a year-on-year comparison, this corresponds to growth of 13.4 percent. The announcement mentions the purchase of two new properties and the completion of three of its own projects as growth drivers. In addition, the company was able to reduce its vacancy rate year-on-year by 0.2 percentage points to 3.5 percent.

A new record of CHF 26.69 million was reported as net profit in the 2020 reporting year. In the previous year, a net profit of CHF 22.51 million was realized. In the year under review, a slightly lower revaluation effect than in the previous year was more than offset by “an excellent operating result” and the sale of three properties, explains the real estate company.

"The stability of our real estate portfolio, which is dominated by residential space, has also been shown in this special year," Andreas Spahni, President and Delegate of the Board of Directors, is quoted in the press release. "The corona crisis only had a marginal effect on the result."

The balance sheet value of Fundamenta Real Estate's real estate portfolio rose from CHF 908.91 million to CHF 991.94 million in the course of the year under review. In February of this year, the company acquired another residential property. In addition, the “further repositioning of two existing properties in Zurich and one property in Bern” has started, according to the announcement. Fundamenta Real Estate plans to carry out a capital increase this year to finance ongoing projects. Details are to be communicated after the General Assembly on April 8th.

March 2021
Pandemic cuts profits at Zug Estates

According to a statement from the Zug Estates Group , the real estate company was able to increase its property income in 2020 by 6.1 percent year-on-year to 57.8 million francs. In the accommodation business, income from the effects of the pandemic was reduced by 57.8 percent to 7.0 million francs. In 2020, income of 72.5 million francs was generated from the sale of properties. In the previous year, 45.6 million francs were posted here.

In 2020, income would have been offset by 15.6 percent higher expenses of 9.0 million francs year-on-year, writes Zug Estates. As a result, the operating result before depreciation and revaluation fell by CHF 3.8 million to CHF 49.6 million. The reported operating result (EBIT) was CHF 43.7 million, 38.0 percent below the 2019 figure. Consolidated earnings excluding revaluation and special effects fell from CHF 31.4 million to CHF 25.9 million.

The value of its own portfolio of real estate increased by 1.5 percent to 1.65 billion francs in the year under review, explains Zug Estates. In addition, in 2020 the company was able to renew leases with a total volume of over CHF 2.6 million per year. For the current year, Zug Estates anticipates increasing rental income and lower property costs compared to the year under review.

March 2021
VZ Depotbank builds headquarters in the Tech Cluster Zug

VZ Depotbank AG and Urban Assets Zug, a subsidiary of Metall Zug AG , have signed a letter of intent for the construction of the new bank headquarters on the area of the Tech Cluster Zug . The Metall Zug Group will provide information on this in a media release . As it says in it, this signature triggers the start of the overall development of the two high-rise buildings CreaTowers East and CreaTowers West.

VZ Depotbank is expected to move into the 40 meter high east tower in 2025. In a second construction phase, the up to 60 meter high west tower is to be built for urban uses and living, among other things. A shared underground car park is planned for both. The architecture competition is expected to be completed in 2021.

According to the Metall Zug Group, the development of the Tech Cluster Zug is “ another big step forward shortly after the project was communicated for SHL Medical AG in November 2020”. At that time , Metall Zug announced that the provider of drug delivery systems would build a combined production and office building on the site.

February 2021

Alain Baumgartner complements the management team at Zug Estates

Alain Baumgartner, MRICS, has been Head Real Estate Portfolio Management and member of the extended management team at Avobis Group AG in Zurich since October 2019. Before that, he worked for over 10 years as a portfolio manager at Swiss Life Asset Management AG, most recently as Head Portfolio Commercial / Centers and Deputy Head of Portfolio Management. Mr. Baumgartner holds a MAS Master's in Advanced Studies in Real Estate Management from the HWZ University of Applied Sciences in Zurich.

January 2021

Development of the area of the former canton hospital

The area to be built is only a few minutes' walk from Zug's old town and has excellent development potential, writes the building construction department of the canton of Zug in a message. There is a legally valid development plan for the area. This includes various construction areas with public uses, gastronomy and hotel uses, apartments and old-age living. In a two-stage competition process, a suitable team of investors, operators and planners is to be evaluated in order to find a competitive building lease offer and the best development concept for the area.
Submit a binding offer
In the current phase 1b “shortlist”, the teams selected from phase 1a “prequalification” would be given the opportunity to deepen their proposals and submit a binding offer for building permits. After the legally binding construction contract and the development agreement between the canton and the investor of the winning concept have been concluded, the latter will take responsibility for the implementation of stage 2 «architectural competition / study contract». In doing so, the project is to be evaluated, which is able to implement the framework conditions of the development plan as well as the selected development concept from the 1st stage, writes the building department. ■
Contact
Construction Department of the Canton of Zug
Building Department
Telephone +41 (0) 41 728 54 00
Info.hba@zg.ch
www.zg.ch/hochbauamt

October 2020
Vision for the further development of the "Metalli living space"

For Zug Estates the starting point is clear: the area around the “Metalli” shopping center has become an important meeting place for the city of Zug. In order for the quarter to be able to meet future needs after more than thirty years of existence, it must develop further. To this end, more space is to be created for living, working and leisure. In addition, there should be free spaces and new uses that offer the Zug population real added value.
In March of this year, Zug Estates and the city of Zug presented the first result of the joint planning process “Metalli living space”. The jury selected the study by the planning team Hosoya Schaefer Architects, NYX architectes, Lorenz Eugster Landscape Architecture and Urban Development and the Zug office of TEAMverkehr.zug for the future design. According to architect Markus Schaefer, the central idea of this further development project is to detach the "Metalli" from their island existence and to better intertwine them with their urban surroundings.
Development process lasting several years
Preserving the tried and tested and at the same time creating a lot of space for new things – this is how the basic idea for the future design of the 30,000 square meter living space “Metalli” in the heart of the city of Zug can be summarized. The results of the competition process are the first step in a multi-year joint development process by
Authorities and builders.
The urban development concept of the team around Hosoya Schaefer intends to preserve the majority of today's buildings around the shopping center. A new building is to be added, no more than seventy meters high, on the corner of Baarerstrasse and Metallstrasse. Several existing buildings will also be topped up. Overall, more space is to be created for apartments, hotels, offices, restaurants, shops and other, partly public-oriented uses. A spatial realignment and the demolition of existing buildings in places will create a new town square with space for a wide range of uses on Baarerstrasse on the Bahnhof-Metalli axis.
Acceptance in the population
"A defining feature of the new overall concept‹ Lebensraum Metalli ›is the upgrading of the outside space through more intensive greening across all spaces and along the connecting axes," says Deputy Head of Project Development and Overall Project Manager Florian Diener. Even the roof areas are included in the outdoor space concept and – also a concern of the Zug population – made partially accessible to the public. “The principle of the glass roofing of the shopping arcade is retained and will be expanded. The area around the Metalli shopping center is a central intersection on the Zug – Baar axis and an important functional urban space for the population of Zug. In order for it to be able to fulfill this task in the long term, it should be carefully further developed in line with the overall development of the city of Zug over the next few years. In addition to the requirements of the authorities and the landowner, concerns and wishes from the Zug population also flowed into the task for the three planning teams. “We communicate all project progress transparently, because public acceptance is the be-all and end-all of our project,” adds Diener.
Gradual implementation over the next few years
From the favored draft of the planning team under the leadership of Hosoya Schaefer Architects, a straightening project is created, which forms the basis for a later development plan. This process phase will take about two years. The first structural measures can therefore take place in 2023 at the earliest. "The final start of construction ultimately also depends on the will of politics and the population," emphasizes Florian Diener. ■

October 2020
Zug is the most attractive canton for companies

The major bank Credit Suisse has published its location quality indicator for this year. This measures the attractiveness of the cantons from the point of view of companies. The canton of Zug moved up to first place this year and was able to overtake the canton of Basel-Stadt. Credit Suisse explains this with the reduction in corporate income taxes that came into effect at the beginning of 2020. The effective maximum corporate income tax rate in Zug is now 11.91 percent – in the previous year it was 14.35 percent.

Behind Zug and Basel-Stadt, the canton of Zurich follows in the ranking, followed by the canton of Geneva, which has moved up ten places. The fifth place is occupied by the canton of Aargau, the sixth by the canton of Schwyz.

In addition to the tax policy of the cantons, Credit Suisse also includes the availability of highly qualified and skilled workers in its analysis. According to the economists of the big bank, the level of education of the Swiss workforce has risen sharply in recent decades. However, there is a gap between urban and rural areas when it comes to the availability of highly qualified workers. In urban regions as well as in the closer agglomeration areas, over 40 percent of potential employees have a higher education. In the city of Zurich this proportion is even 57 percent.

Credit Suisse not only scrutinized the cantons, but also economic regions. This is because she is of the opinion that consideration at the canton level falls short of the mark, especially in larger, heterogeneous cantons. According to the results, metropolitan areas such as Zurich, Zug, Basel, Baden and Geneva and their agglomerations are among the most attractive regions for companies.

October 2020