Allreal : to acquire four commercial properties from Generali Switzerland

Allreal is to acquire four commercial properties with a total useful space of 54,000 square metres from Generali Switzerland insurance company. Generali will continue to occupy the buildings itself and has concluded long-term rental agreements with Allreal, with effect on Allreal's net income from 1 November 2017. Target annual rental income amounts to CHF 12.5 million. In accordance with both parties, the purchase price will not be revealed.

The four buildings acquired from Generali Switzerland include three commercial properties in Adliswil (ZH) constructed in 1989/1990 with 39,000 square metres useful rental space in total plus 603 parking spaces and a commercial building in Nyon (VD) constructed in 2005/2006 with about 15,000 square metres useful rental space and 171 parking spaces.

In terms of the triple-net rental agreements concluded with Generali for the four fully let properties, the lessee will bear the entire real estate expenses for the length of the rental term.

Generali Switzerland will continue to occupy the buildings for its own purposes.

The rental agreements represent a target rental income of CHF 12.5 million in total and will be recognised in Allreal's income. The acquisition of the four commercial buildings will substantially enlarge Allreal's portfolio of yield-producing properties.

The transaction was financed by means of existing credit lines.