The purchase of 35% of GFG Gesellschaft für Grundeigentum ("GFG"), Zurich, by PSP Swiss Property Ltd, Zug, represents the first step in the acquisition of a prime real estate portfolio. The transaction integrating GFG into the PSP Group will be perfected by the end of August 2005. The GFG shareholders are a number of private persons.
The portfolio - with 28,663 m² rentable area (retail/office) - consists of 17 commercial properties centrally located in Swiss cities. The portfolio includes first-class objects such as the commercial houses at Bahnhofstrasse 66 (Bally) in Zurich, at Spitalgasse 9 and Kramgasse 78 in Bern, at Freie Strasse 38 in Basel, at Rue du Pont 22 in Lausanne or at Via Pessina 16 in Lugano. With a current vacancy rate of 4.9% the portfolio generates annual rental income of approximately CHF 13.9 million. Risks and benefits of the portfolio pass on 1 July 2005.