Interview with Anastasius Tschopp in Immobilien Business

IMMOBILIEN Business: Mr Tschopp, you have been heading up Swiss Prime Site Solutions in your role as CEO since 2018 and are set to be appointed to the Executive Board of the Group parent company Swiss Prime Site on 1 January 2021. What changes in the company’s operational business will this move entail? What is it about the role that appeals to you?Anastasius Tschopp: The thing that appeals to me is that my new role gives me even greater responsibility. I like to learn, I am curious and I see change as an opportunity – so I’m passionate about tackling new challenges. In operational terms, real estate asset management for third parties will be strengthened by my appointment to the Executive Board. I can contribute my experience and help steer Swiss Prime Site in the right direction.

Swiss Prime Site Solutions is aiming to have increased its assets under management to CHF 7 billion and its EBIT contribution to the balance sheet of the parent company Swiss Prime Site AG to CHF 30 million by 2025. Aren’t these targets a bit on the ambitious side?
Admittedly, it’s something of a challenge, but I’m confident that we can maintain the current pace of growth and achieve our targets.

What do you mean by «current pace of growth»?
In 2018, when I took over the reins as CEO, Swiss Prime Site Solutions managed assets worth CHF 1.4 billion; by the end of this year, including the project pipeline, this figure will come to three billion. Despite a difficult period spanning four or five months caused by the COVID-19 pandemic, we were also able to enter into transactions worth more than CHF 250 million this year. We have also boosted performance and reduced vacancy rates. Our acquisition and project pipeline is looking healthy, so our targeted growth – distributed over various mandates and vehicles – is very realistic.

Swiss Prime Site Solutions has also announced its intention to strengthen its market position in real estate investment and services over the next few years. What exactly are you planning?
First, we are planning new investment products, including real estate funds. This will see us set up our own fund management company, and we’ll be applying to FINMA to approve the company in the first quarter of 2021. We have already developed the product design for our very first fund, which I expect we will be able to launch in the second half of 2021.

Which investor groups do you want to target with these funds?
A broad range of investors with different investment preferences who are looking to invest in the fast-growing real estate market.

What will be the focus of the new funds you are planning – for example in terms of segment or strategy?
Regulatory reasons prevent me from saying any more at the moment. All that I can say is that we will initially be focusing on Switzerland.

That sounds like quite a challenge. After all, while demand for real estate in Switzerland has been very high for years now, properties are known to be in rather short supply...
There is no doubt that the competition is fierce, but I believe that Swiss Prime Site Solutions is very well positioned in this competitive landscape. After all, we have the broad-based expertise that a successful asset manager needs, are represented in several locations throughout Switzerland, have a good network and know the market territory very well.

We are also in a position to exploit synergy potential within the Swiss Prime Site Group. Last but not least, we are a very effective team and are seen as a reliable partner; we have streamlined decision-making processes – as an independent asset manager, we can act fast when suitable opportunities arise. This guarantees a high level of deal security and transparency, and builds trust on the market. In 2018 and 2019, for example, we were able to close transactions worth more than CHF 600 million.

Nevertheless, with the current environment suggesting that interest rates are set to remain at record lows, supply is likely to become even shorter, at least in the medium term...
It is precisely when supply is scarce that it is important to pick up on developments early on and adopt a proactive stance. And this is exactly where one of our core competencies lies, in my view. One example is securing properties for redevelopment projects. We often get involved in off-market deals as well. On our annual Capital Markets Day, we announced that Swiss Prime Site would be disposing of some of its properties.

Are you thinking of including them in the planned Swiss Prime Site Solutions funds?
In general, we are aiming to be even more active in exploiting the synergies with Swiss Prime Site Immobilien, which manages the properties owned by the Swiss Prime Site Group. I certainly believe that we could think about acquiring properties from Swiss Prime Site if appropriate opportunities present themselves, and then incorporating them into themed investment vehicles or geographical funds. But this is only one of the opportunities open to us.

As an asset manager, you have been managing the assets of an investment foundation for third parties up until now.Is Swiss Prime Site Solutions also planning to launch new products in this area?
In general, we are aiming to further strengthen our existing market position in the field of real estate asset management & services and to expand these activities significantly in the years to come. For example, we also want to attract more clients in the form of pension funds, corporates or even high-net-worth private individuals that no longer want to manage their properties themselves, want to outsource them or want to incorporate them into one of our vehicles as a contribution in kind. The first investment group «SPIF Real Estate Switzerland», in which 280 pension funds invest, was launched for the Swiss Prime Investment Foundation in the autumn of 2015 and has exhibited strong growth since then. Total assets came to around CHF 2.4 billion as at 30 September 2020. October 2020 saw us launch the «SPIF Living+ Europe» investment group, which invests in European properties with various residential uses. The emphasis is on senior living in particular, as well as student housing, serviced apartments and micro living. The initial issue will run until 22 December 2020. Further investment groups will follow from 2021 onwards. 

How much capital do you want the first issue to raise?
We have a very large pipeline for the investment group, meaning that we are prepared to accept a relatively large sum of money. We can easily invest up to CHF 100 million in equity very quickly.

Where, for example?
We are in the midst of exclusive negotiations for the acquisition of a larger portfolio in Germany, as well as further properties in Belgium and France.

Nowadays, asset managers need to be equipped with a wide range of competencies. Does Swiss Prime Site Solutions have the in-house solutions it needs, or do you work with external specialists?
Our activities span the entire breadth of the market, from acquisition, project development and refurbishments to highly professional asset management and the rental business, and we have all the skills we need to do so. Our team currently comprises 14 employees, a figure that will rise to over 30 as of 1 January 2021 as we have made the decision to integrate Immoveris (editorial note: part of the Swiss Prime Site Group) into Swiss Prime Site Solutions.