Contributions in kind

We are your professional partner for implementation of contributions in kind. Profit from our years of expertise and rapid transaction management.

Definition

A contribution in kind is defined as the contribution of real estate to an investment vehicle. In return, the owner receives shares in the investment vehicle (investment foundation and/or investment fund). With the partly tax-optimised contribution in kind, the real estate owner chooses to transfer his directly held real estate portfolio to indirect real estate investments. Direct real estate investments place high demands on the real estate owner. Detailed knowledge of the regional markets and real estate-specific know-how are indispensable.

After all, an existing portfolio will pose major challenges in the future:

Sustainability
Optimisation of vacancies
Renovation backlog
Exploitation of potential
Regulatory and political challenges
Economies of scale

Factsheet

Diversification
as a key element

Through a contribution in kind, small and medium-sized pension funds as well as institutional investors gain access to larger real estate investment volumes that are managed professionally and efficiently. Diversification is of central importance for optimising the risk-return profile of a real estate portfolio.

Since direct real estate investments of pension funds have historically grown regionally, a better geographical and use-specific diversification is achieved as a direct result of non-cash contribution transactions.

Advantages

In the case of a contribution in kind to an investment vehicle of Swiss Prime Site Solutions, there are advantages in four areas:

Performance increase

Efficient use of capital
Potential of revaluation gains
Tax privilege for investors
Asset optimisation
Risk reduction

Large diversification effect

Stable cash flow
Highest transparency
Optimisation of resources

Transfer of operational property management

Efficiency gains
Release of resources / succession planning
Expertise of Swiss Prime Site Solutions
Increased flexibility

Timing of contribution in kind independent of issue windows

Increased fungibility (tradability of share certificates possible)
Increased freedom of decision

Process

We execute contributions in kind with a stringent, state-of-the-art process. In recent months, we have carried out two contributions in kind valued at about CHF 250 million.

Fact check

Desktop analysis
Analysis of the real estate market

Study data room

Analysis of rental contracts, annual report documents, cadastral plans, floor plans, construction accounting, financial statements, ancillary cost accounts, etc.

Property inspections

Property inspections by Swiss Prime Site Solutions and valuer

Offer

Submission of a binding purchase offer

On agreement

Legal due diligence and creation of contributions in kind contract
Tax due diligence and ruling

Signing

Certification of contracts

Closing

Transfer of ownership
Smooth, flexible documentation transfer

References

We support you throughout the entire contribution in kind process with our extensive experience and make our nationwide network of experts available to you.

In recent months we have been able to demonstrate our contribution in kind process on several occasions. For example, we have carried out three corresponding transactions with a volume of around CHF 250 million.