How do companies benefit from awarding a mandate to Real Estate Switzerland?
We are a leader in the mandate business. Clients benefit from our specific real estate knowledge and our long track record of expertise. Managing a real estate portfolio optimally from a tax perspective, for example, requires a great deal of specialist knowledge. Appropriate resources are also required to manage a larger real estate portfolio consistently and profitably. Many companies have only one or two people for that. We, on the other hand, can fall back on the expertise of our 80 or so experts when required and enlist their services in a flexible manner. Not only that, but for the past 15 years or more, we have considered sustainability factors within the real estate sector – and this is an extremely central issue in the real estate business.
Which clients award mandates?
For the most part, they are institutional clients such as pension funds or insurance companies. But public sector institutions and family offices are also increasingly looking to award mandates. The minimum size of portfolios that we look after is around CHF 500 million. It is also possible to have smaller portfolio sizes at the outset, as long as targeted portfolio expansion is on the agenda. A certain volume is required to make a mandate financially appealing for both sides.
Are there other criteria that a portfolio has to meet?
Mandates are customized solutions per se. We do not specify any fixed criteria, but rather we examine all inquiries on a case-by-case basis. Our mandates currently focus on mixed portfolios – in other words, a larger percentage of residential properties supplemented with commercial properties. One exception to this is Central Real Estate Basel’s portfolio. In this case, we work within a consortium of experienced real estate specialists to assist with the development of Switzerland’s largest development site.
How has demand for mandate solutions like this evolved?
An increasing number of companies are considering awarding external mandates. This was not the case a few years ago. In the last two years – and quite noticeably over the past twelve months – we have seen a large number of these kinds of inquiries. Our mandate portfolio has grown by 20% in the last twelve months alone and we want to continue expanding our position over the coming years. The total volume of Swiss real estate assets managed on a mandate basis currently stands at more than CHF 15 billion.