Our Investment Guidelines
The properties of the Zug Estates Group are predominantly centrally located, fully developed, high building density sites in the Zug region. The portfolio's geographic concentration makes it possible to take advantage of the specific factors of the regional market and its attractiveness to international businesses. The portfolio is broadly diversified by use and comprises a healthy balance of residential, service and retail properties as well as hotel and commercial buildings and parking garages.
The Zug Estates Group follows an integrated business model that covers a property's entire life cycle: it conceives, develops and builds properties, manages them, ensures capital preservation and maintains technical services. The real estate portfolio is actively managed and forms the basis for the long-term growth of the Group. Taking account of the specific circumstances of each property, the Group implements cross-building development concepts characterized by sustainability and resource efficiency.
The other principles of the Group's investment policy are as follows:
- The company holds investment property and buys and develops projects for self-use.
- Borrowed capital should not exceed 40% of total assets.
- Zug Estates invests a proportion of its net income in the Group’s sustainable growth. We will increase the ordinary dividend by 10% per year until the payout ratio reaches a level of two thirds of earnings from operations provided no major investments are needed.
- The investment properties are primarily to be located along the Zurich – Zug – Lucerne transit axis.
- Additionally, the search will focus on sites in German-speaking Switzerland that are expected to be in high demand over the long term (inside the city limits or metropolitan areas of Zurich, Winterthur or Basel).
- The strategy envisages the development of large-scale sites with a unique presence, broadly diversified uses and internal synergies.
- The investment volume is expected to be at least CHF 200 million.
- No real estate properties outside Switzerland are envisaged.