Dutch listed property firm NSI is planning to sell its entire property portfolio in Switzerland as part of a major strategic refocusing following its merger earlier this year with VastNed Offices / Industrial.
Dutch listed property firm NSI is planning to sell its entire property portfolio in Switzerland as part of a major strategic refocusing following its merger earlier this year with VastNed Offices / Industrial.
'NSI's position in the Swiss market has been investigated and the conclusion is that it is more attractive to invest in the Netherlands and Belgium as returns are significantly higher in these markets,' the company said in a statement on Thursday.
NSI's Swiss portfolio consists of 15,000 m2 of office space in Thalwill and Fribourg and 22,000 m2 of retail space in Fribourg and Zug, with an overall value of CHF 148 mln (EUR 120.5 mln) and a net rental income of CHF 6.6 mln.
'Considering the higher returns that can be achieved in the Netherlands and in Belgium this means that NSI will leave the Swiss market in the near future if the opportunity to do so arises at good prices,' it added. The sale of the group's Swiss portfolio will have a positive effect on the company's loan-to-value ratio of around 2-2.5%.
The company is also planning to intensify its disposal strategy of smaller, non-core office buildings in the Netherlands with around EUR 50 mln of sales envisaged in 2012. Proceeds will be used to redeem debt.
'Our Swiss portfolio has been performing very well. However when the prospect of growth at attractive returns is rather limited, one has to conclude that now is the right time to start selling our Swiss properties and add value for our shareholders,' said Johan Buijs, CEO of NSI.
