Swiss Prime Site Acquires Fundamenta Group's Real Estate Division

Swiss Prime Site has finalized an agreement to acquire the real estate asset management operations of Fundamenta Group, expanding Swiss Prime Site Solutions (SPSS), its asset management division. This move positions SPSS as Switzerland's largest independent real estate asset manager, with total assets under management (AuM) soaring to CHF 13 billion.

By acquiring Fundamenta, Swiss Prime Site inherits a diverse portfolio including a listed real estate company and a Luxembourg SICAV fund among other investment products. This acquisition, funded through a mix of 75% cash and 25% shares, introduces around 2,000 more institutional and private investors to SPSS’s existing base.

René Zahnd, CEO of Swiss Prime Site, highlighted the strategic alignment and cultural fit between the two entities, anticipating a broadened product range in the residential segment and expanded market access. On the other side, David Garcia of Fundamenta Group expressed pride in the handover, ensuring continuity for investors, employees, and partners.

The transaction, expected to complete in Q2 2024, aims to maintain a loan-to-value ratio below 40% without disclosing the transaction price. Swiss Prime Site will also hold all naming rights for Fundamenta post-acquisition.

This major acquisition not only enhances the size of SPSS’s managed property portfolio but also ensures direct access to the German real estate market for its clients, promising significant revenue and cost synergies and an expected consolidated FFO I per share increase.