NSI has sold its Swiss retail property ‘Hertizentrum’ in Zug on book value for CHF 32 million (approx. €26.31 million). Hertizentrum generated an annual gross rental income of approx. €2.0 million. The property was locally financed at fixed interest rates. The proceeds of the sale will be fully used to redeem loans. The sale and purchase agreement was signed last week; closing is expected to take place in April 2013.
Johan Buijs, CEO of NSI comments: “This transaction is supportive to our commitment to reduce our LtV to below 55%. NSI will continue its disposal strategy of non-core assets and assets of which the value potential under NSI’s management has been optimized in order to reduce our LtV.”
In 2012, NSI announced its strategy to exit the Swiss market and sold two properties, representing 70% of the portfolio, in that year. The Hertizentrum transaction is a next step in this strategy. The process of selling the last remaining Swiss property (2,267 m² mixed office & retail center in Fribourg) is ongoing.