"Investors are returning to the transaction market"
Anastasius Tschopp
CEO Swiss Prime Site Solutions
Anastasius Tschopp's career in the property sector began with an apprenticeship as a tiler and later led him into the building materials trade. Tschopp then worked for the development department of Zurich Airport before moving to Credit Suisse as Head Property Marketing Real Estate Asset Management. He joined Swiss Prime Site over ten years ago, where he was most recently Head Portfolio Management. In 2018, he took over the management of the newly founded Swiss Prime Site Solutions and has been a member of the Executive Board of Swiss Prime Site since 2021. He is now on the Supervisory Board of Fundamenta Group Deutschland AG, which was acquired in April 2024.
When you started as CEO of Swiss Prime Site Solutions, you were the head of a team of three. Now you have over 130 employees and over CHF 13 billion in assets under management. You are one of the great success stories in Swiss asset management. Is this a strategic success or also the result of opportunities and a bit of luck?
In recent years, we have achieved remarkable success through strategic foresight and corresponding product launches as well as targeted M&A activities. In 2021, we acquired the fund management of Akara and thus took over the Akara Diversity PK Fund. In the same year, we launched the commercial fund Swiss Prime Site Solutions Investment Fund Commercial (SPSS IFC) and grew to 80 employees and assets under management worth over CHF 8 billion. Our growth has continued in the last two years, both organically and through the acquisition of Fundamenta, which has property assets under management in Switzerland and Germany and was completed in April 2024. This has enabled us to significantly expand our product range and we now have a broad base with around 130 employees and extensive expertise in the residential and commercial sectors. However, size alone is not decisive - the quality of the products must be right, as must their performance. Right from the start, we had a clear strategy on how we wanted to build Swiss Prime Site Solutions and what our product range should look like. At the same time, we took advantage of market opportunities and remained flexible. Luck is part of this, coupled with recognising opportunities and being courageous. Although the succession of crises over the past three years, some of which have overlapped, is not exactly a sign of luck.
Acquisitions as part of the strategy: is it about volume growth or diversification and expanding expertise?
It is part of our strategy to continuously expand our expertise, both on the company and product side. It is also about expanding the 鈥榬esidential鈥� sector and further diversifying our offerings. We want to be a property platform for all investors. We offer a wide range of options through our broad product range and also cater to individual customer wishes. It is and remains important that the products we offer perform well.
Are further acquisitions an option?
No further acquisitions are currently planned. We already cover the entire product range, from 100% commercial to 100% residential, for all investors. With our current product range, our organisation and our four locations in Zug, Zurich, Geneva and Munich, we are in an excellent position to grow organically.
You currently have two property funds of your own in your portfolio. What are the plans here?
Our plans for the two property funds in our portfolio include both qualitative and quantitative growth. The Akara Diversity PK mixed fund has achieved a cumulative outperformance of 7.88% compared to the KGAST Immo-Index Mixed since its launch in 2016. The Akara Diversity PK portfolio is being continuously developed as part of the tried-and-tested buy-and-manage approach. We will continue to realise further potential from the existing properties through active management. The SPSS IFC commercial fund achieved a very strong result as at 30 September 2024. The 2023/2024 financial year closed with rental growth of 9.7% and the dividend was increased to CHF 4.90. The high-yield portfolio achieved a high cash flow yield of 5.43%, which is well above the target corridor of >4.0%. After a slight market correction, the market is currently experiencing a slight upswing. The easing interest rate environment is also having a positive effect and we are seeing increased interest from investors.
How has the demand for your asset management services developed?
Demand has increased considerably in recent years. A key driver of this development is the falling interest rate environment, which is prompting investors to look for attractive investment opportunities. Another important factor is the increasing importance of ESG criteria. Many investors now attach great importance to ensuring that their investments meet sustainable and ethical standards. This has led to many investors looking to outsource their portfolios, either as a contribution in kind or by commissioning mandates. By outsourcing to specialised asset managers, they can ensure that their investments are professionally managed and comply with ESG criteria. Overall, it is clear that the demand for our services is not only high, but also continues to grow, as we are able to respond to the changing needs and expectations of investors and offer them innovative and sustainable investment opportunities.
Is demand for Swiss property from institutional investors levelling off?
Demand for Swiss property from institutional investors has indeed levelled off somewhat in the last two years. This was mainly due to fears of a major price correction, which prompted some investors to sell property earlier. During this period, it was more difficult to carry out transactions as there was uncertainty about future price developments. We, on the other hand, always believed that there would be no major corrections in the areas in which we are active with our products. This assessment proved to be correct. Switzerland differs from other countries, which has a positive effect on the stability of the property market. It is fundamentally strong and positioned differently from neighbouring countries. Momentum is now clearly picking up again. Investors are returning to the transaction market and demand for property is rising again. This is due in particular to the fact that the Swiss National Bank cut interest rates four times last year.
You also offer club deals. How do these differ from services for an investment foundation?
Club deals offer an attractive opportunity for private investors to invest in property projects. These deals differ from the services we offer for investment foundations in several respects. One key difference lies in the structure and flexibility of the investments. Club deals are tailor-made investment vehicles that enable a small group of investors to invest jointly in specific property projects. This structure offers the advantage that the investors are directly involved in the decisions and therefore have more control over their investments. In addition, club deals often offer higher potential returns, as they usually invest in projects with higher potential returns - but on the other hand also with increased risk. In summary, club deals offer a flexible and exclusive investment opportunity for a broader group of investors, while investment foundations are more standardised investment vehicles for institutional investors. Both approaches have their own advantages and can be chosen according to the individual needs, qualifications and objectives of the investors.
Swiss real estate plays a very important role if Switzerland wants to achieve the net-zero CO2 emissions target by 2050. What is SPSS doing to achieve this?
At Swiss Prime Site Solutions (SPSS), we have set ourselves ambitious targets to make our contribution. While the net-zero target for Swiss Prime Site (SPS) is to be achieved by 2040, we are pursuing a similar goal in our funds, but rather by 2045-2050. A key component of our strategy is the implementation of reduction paths for all our products. These reduction paths help us to systematically reduce CO2 emissions and ensure that we are on track to achieve our targets. With modern analysis tools, we can evaluate the potential of our properties more quickly and reliably using key figures. This not only benefits sustainability, but also enables us to make informed decisions. For example, we can analyse whether district heating is possible for a property and what the CO2 reduction path for this property looks like. At the same time, we are able to use these tools to monitor the performance of our properties reliably and transparently. We can track exactly how our portfolio is developing and which measures should be taken for further optimisation. Through strategic acquisitions, sales and operational improvements, we ensure that our properties are not only sustainable but also economically successful.
What personal development have you made - or had to make - in the course of setting up SPSS?
My personal development over the course of my career has been characterised by a deep passion for property, which has its origins in my training as a tiler. This enthusiasm and close proximity to the grass roots and building shell later led me into the sale of building materials and finally into property management. This diverse experience has given me a comprehensive understanding of the various aspects of the property sector. I took on the role of CEO of Swiss Prime Site Solutions AG in May 2018. In an investment environment characterised by uncertainty in recent years, I succeeded, together with the team, in significantly increasing the assets under management. This achievement demonstrates our ability to achieve growth and performance even in difficult times. These developments have shown me how important it is to be flexible and adaptable. The ability to bring together different teams and cultures while recognising the strengths and needs of the respective employees is crucial to the joint success of a company like ours in such a dynamic industry.