Swiss Prime Site has signed an agreement to take over Fundamenta Group (Schweiz) AG and Fundamenta Group Deutschland AG (together “Fundamenta”), thereby significantly expanding the dynamically growing asset management area.
Fundamenta, the specialized real estate asset manager with a focus on housing
Fundamenta, founded in 2006 and based in Zug and Munich, is a leading independent asset manager of CHF 4.2 billion in real estate assets with a variety of investment vehicles (listed real estate companies, investment foundations, promotional vehicles, funds, SICAVs and direct mandates). Fundamenta has around 2,000 investors and addresses institutional customers (e.g. pension funds, banks and insurance companies) as well as wealthy private customers and family offices. CHF 3.3 billion is invested in Swiss real estate, with the residential share being 75% – 100% depending on the vehicle. The Fundamenta Group Switzerland is particularly characterized by attractive “Club Deals” – promotional business for developments in the residential sector with co-investors. A further CHF 0.9 billion AuM includes core residential properties in Germany, which are managed through an established organizational structure in Munich. Fundamenta generated revenue of over CHF 24 million in 2023. The approximately 60 employees at the Zug and Munich locations have many years of experience and expertise in the respective markets and will be fully taken over by Swiss Prime Site.
René Zahnd, CEO Swiss Prime Site, says: “Fundamenta is a perfect fit for us. We are thus continuing to pursue our focused real estate strategy and are substantially strengthening the asset management arm of Swiss Prime Site Solutions. In this way, we are expanding and deepening our investor base, broadening our product range, particularly in the residential sector, and can now also offer our Swiss customers direct access to the German real estate market, which we see as an attractive addition to Swiss investments in the future. Throughout the entire process, our team and I felt that we fit together very well culturally – so we warmly welcome all new customers and employees.”
David Garcia, founder and board member of the Fundamenta Group, adds: “After 18 successful years of building the company, we as the founding family are very proud to be able to hand over our real estate division to Swiss Prime Site. Long-term continuity for investors, employees and partners was very important to us in the process – this is optimally guaranteed with Swiss Prime Site.»
Swiss Prime Site is taking over Fundamenta (Schweiz) AG and Fundamenta Deutschland AG from the previous shareholders, which consist of the Garcia and Marxer families, the Luzerner Kantonalbank and the management. The acquisition will consist of 25% shares of the authorized capital of Swiss Prime Site and 75% in cash from freely available funds, which continues to aim for a financing ratio of the real estate portfolio (LTV) of less than 40%. Both parties have agreed not to disclose the sales price. The transaction is expected to close soon in the second quarter of 2024; no further approvals are required. All naming rights to Fundamenta are transferred to Swiss Prime Site.
The asset manager Belvédère Asset Management, founded in 2001 with around CHF 3 billion AuM, including the associated brand, remains the property of the previous shareholders and will continue to operate unchanged. Swiss Prime Site Solutions will be mandated for real estate services in the future.
Swiss Prime Site Solutions with a broader product range and further economies of scale
Following the transaction, Swiss Prime Site Solutions will manage a real estate portfolio of around CHF 13 billion, making it by far the largest independent real estate asset manager in Switzerland. In addition, Swiss Prime Site Solutions now also offers its customers direct access to the German real estate market. Pro forma, the joint portfolio is divided into 63% residential properties and 37% diversified commercial properties and generated fee-based income totaling CHF 73 million in 2023. The new investment vehicles and complementary investment products are expected to significantly increase customer benefit. The use of the Swiss Prime Site platform, through which almost CHF 26 billion in real estate is now managed, will lead to economies of scale in organization and sales.
After successful integration and the associated realization of the expected revenue and cost synergies, Swiss Prime Site expects an increase in consolidated FFO I per share of around 20 cents due to the purchase, part of which will already occur in 2024.
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