Lausanne

Dealing with so-called “undisclosed” real estate

For corporate clients who are faced with questions about how to deal with non-essential real estate, strategic dialog regarding the formulation of a strategy for dealing with non-essential real estate is often very helpful. This is where our Corporate Services team can provide support.

Workshop as a successful instrument
Our Corporate Services team has had positive experiences in this area as part of strategy workshops. Together with the management of a large Swiss group of companies, a conceptual approach was discussed on how strategic ownership of land can be evaluated, assessed and developed and what various operational alternatives could look like.

Advice and joint development of alternative courses of action
The interdisciplinary team from Investment Advisory, Research & Strategy and Corporate Services pursued an intensive advisory approach and showed the client how land is developing in Switzerland, taking into account the capital market, and what approaches exist in strategic real estate portfolio management. Strategic alternatives were then developed together with the client.

Strategy discussion for decision-making
In today's environment, the strategic discussion on the further development of non-essential real estate holdings must be conducted intensively and at the highest corporate level.
For the solution-finding process, the team focused on 3 areas:

• External developments: Analysis of the environment and influencing factors

• Real estate strategy: Development of a portfolio strategy based on the criteria of current and future requirements and availability as well as the development of solutions using a decision matrix

• Alternative courses of action:
  “Hold” - operational and non-operational site development, possibly with additional purchase ‘Interim use’ - options for transfer of use
  “Building lease” - permanent and independent building lease
  “Sale with option” - sales transaction

After an intensive discussion, operational implementation measures were formulated and approved.