Stronger Swiss franc hurting landlords
Office vacancies expected to rise further in the next two years as foreign companies find rental rates expensive, say analysts
Add BT as a preferred source
Berlin
WHEN Swiss Life Holding AG bought an office building in Geneva earlier this month for 535 million Swiss francs (S$804 million), it set a record for the city. A day later, the central bank unexpectedly scrapped its currency cap, making the job of leasing the property more difficult.
Investors such as Swiss Life, Switzerland's largest life insurer, and Pensimo Management AG, a Zurich-based pension fund manager which sealed Bern's biggest office deal last year, keep buying properties even as rising vacancy rates cause rents to fall, eroding returns. That's because of a lack of high-yielding alternatives in a country with one of the world's lowest interest rates.
Share with us your feedback on BT's products and services
