SWITZERLAND Trends and Developments Contributed by: Andreas F. Vögeli, Fabiano Menghini, Charles Gschwind and Annina Fey, Niederer Kraft Frey
Retail sector Retail real estate continues to adapt to structural change driven by e-commerce and evolving consumer behaviour. Prime retail locations in major cities remain strong due to tourism and high foot traffic. Secondary locations, however, face declining demand. Industrial and logistics sector The logistics sector is growing. E-commerce growth and supply chain restructuring have increased demand for warehouses and distribution centres. Limited land availability makes logistics assets par - ticularly valuable. Investors increasingly view the sec - tor as a stable, long-term income generator. Specialised sector: life sciences and data infrastructure Specialised real estate sectors are expanding. Swit - zerland’s life sciences clusters, particularly in Basel, Zurich and Lausanne, continue to attract investment in research facilities and innovation campuses. Digital infrastructure has emerged as a strategic asset class. A standout example of this trend is Antin Infrastructure Partners’ agreement to acquire NorthC Datacentres from DWS and other sellers in a share deal. Data centres combine physical assets with long- term service contracts and energy-intensive opera - tions, requiring sophisticated regulatory and environ - mental analysis. Such investments are closely linked to grid capacity, energy sourcing, and environmental permitting. As digitalisation accelerates, demand for secure and sustainable data infrastructure is expected to grow, positioning data centres as a component of institutional real estate strategies. Financing Financing, security structures and refinancing risk Financing conditions remain more restrictive than in previous years. Higher interest rates, Basel-aligned capital requirements, and Swiss non-bank lender rules, including the “10/20” rules, require careful structuring. Refinancing transactions and amendments to secu - rity packages demand particular attention. Avoiding unintended novation effects or bankruptcy-avoidance
risks has become a core legal concern. Cross-border group guarantees and mezzanine structures require detailed regulatory and tax analysis, especially where Lex Koller considerations may be triggered. The CHF125 million revolving credit facility arranged by UBS (formerly Credit Suisse), together with a con - sortium of Swiss banks, for Andermatt Swiss Alps AG demonstrates that structured financing remains avail - able. The facility refinances existing indebtedness and supports investments in hotel and tourism infrastruc - ture in Andermatt. Investment flows and institutional dominance Institutional investors such as pension funds and insurance companies dominate the Swiss real estate market. Their long-term investment horizons and reg - ulatory advantages support stable demand. International capital remains active but selective, especially due to Lex Koller, focusing on prime assets and specialised sectors such as logistics and life sci - ences. Alternative financing and structuring Innovative financing structures are gaining traction, including: • joint ventures; • club deals; • forward funding; and • sale-and-leaseback transactions. These structures enable risk sharing and facilitate large-scale development projects. Sale-and-lease - back transactions, portfolio reorganisations, and redevelopment-driven acquisitions increasingly call for multi-disciplinary structuring (tax, regulatory, and planning). The sale of a residential real estate portfolio in the Cantons of Zug and Lucerne from “Pensionskasse der HOCHDORF-Gruppe” to an investment founda - tion illustrates the diversity of the different types of deal structuring. The sale was structured by way of a combination of an asset deal and a tax-neutral asset swap carried out as an asset transfer according to the Merger Act.
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