Property sale strengthens liquidity and reduces debt
Swiss Estates AG has realised a profit on the sale of several properties in Zurich. This will enable the company to reduce its liabilities and strengthen its liquidity. In addition, a dividend has been announced for the 2024 financial year.
Swiss Estates AG, based in Freienbach, has sold several properties on Badenerstrasse in Zurich to a private limited company with effect from the end of 2024, the real estate company announced in a press release. A profit was realised from the sale of the properties, which were acquired in 2007 and have been continuously developed since then, reducing Swiss Estates’ liabilities by around CHF 30 million. At the same time, the company’s liquidity has been “significantly strengthened”, writes Swiss Estates.
The real estate company intends to use the profit realised in the annual financial statements as a result of the transaction to pay out a dividend. Its exact amount currently depends on the calculation of the property gains tax by the City of Zurich’s tax office. Swiss Estate expects a profit of several million francs for the 2024 annual financial statements.
One of the reasons given by the real estate company for the sale of the properties at Badenerstrasse 288 – 296 is that the value appreciation cycle of the properties has essentially come to an end. In addition, Swiss Estate intends to concentrate on properties with purely residential use in future. The company is currently negotiating the acquisition of five new properties.