Satigny Business Park (“SBP”), is a mixed-use property located two kilometers from Geneva airport, with a net leasable floor area of 18,000 sq.m., set on a 31,500 sq.m. site. Acquired by Westcore in 2010, the building was originally developed and occupied in 1988 by Agie Charmilles (“AC”), a machine tool manufacturer. The acquisition was structured as a partial lease-back to the vendor of 25% of the floor area, generating sufficient net revenues to fully service the acquisition loan.
Although constructed to a high specification, SBP lacked the flexibility to attract local tenants. A business plan was developed to subdivide the manufacturing and office areas into smaller units to widen the appeal of SBP. In addition to subdivision costs, funds were also allocated to roof replacement, car park renovations, general repairs and landscape upgrades. The total budget for executing the business plan was CHF 3 million, funded from debt and equity.
The result is that a variety of industrial, service, and government agencies selected SBP as an operational base. Upon completion of the business plan – 18 months ahead of schedule – Westcore achieved 100% occupancy, a stabilized gross rental income of CHF 3.75 million, some 15% ahead of underwriting, and a weighted average lease term exceeding 10 years, compared to the typical market lease term of 5 years. Westcore sold the Business Park in 2014.
3 Shepherd Street, 2nd Floor, London, W1J 7HL, United Kingdom.
Phone: +44 20 3841 8602
Rue des Voisins 17, CH-1205, Geneva, Switzerland.
Phone: +41 22 989 53 53
Represented by Peregrine Holdings,
Hardenbergstraße 27, 17th Floor Zoofenster, Berlin 10623, Germany.
Phone: +49 30 2045 8602
Represented by IVAM,
Guntheil Schoder Gasse 8-12, 1100 Vienna, Austria.
Phone: +43 1 66 20 720