Deals & Cases | 23 May 2019
Central Real Estate Basel AG acquires parts of “Klybeck” in the largest real estate transaction of the recent years
FRORIEP advised the Central Real Estate Group in connection with the acquisition of properties of 160’000 m2 within the Klybeck area in Basel. Central Real Estate Group was financed in a club deal by major Swiss institutional investors, including Baloise insurance group, Credit Suisse Anlagestiftung, Safra Sarasin Anlagestiftung and Pensionskasse Zug. The Klybeck area is one of the largest development sites in Switzerland totalling around 300,000 m2. Three years ago, the two major landowners in Basel, BASF and Novartis, agreed with the canton of Basel city to jointly develop their industrial site, thereby creating a new residential and commercial district in the center of Basel. With this acquisition the Central Real Estate Group has assumed the obligations of Novartis under this planning agreement.
The transaction was led by Nova Property Fund Management AG, Mettler2Invest AG and Credit Suisse Asset Management (Switzerland) AG who will jointly take on the responsibility for the development of the plot. FRORIEP advised on the setting up of the investment and acquisition vehicles, including negotiations with the shareholders, contracts with the developers and regulatory aspects and was responsible for the tax and environmental due diligence in view of the acquisition of the property. The transaction was also supported by Niederer Kraft Frey who was responsible for the real estate due diligence as well as the negotiation of all contracts related to the properties and led the negotiation of the debt financing tranche.
Nova Property Fund Management AG is a FINMA regulated real estate fund manager for collective investment schemes under Swiss law. Nova Property is active in the management and administration as well as distribution of self-managed funds. In addition, it also provides investment advice for real estate investment companies and real estate investment foundations.
Mettler2Invest AG is one of the leading independent project development companies specialising in the development, project management and financing of medium-sized to complex real estate projects.
Credit Suisse Asset Management (Switzerland) AG will be responsible for the site management.
This transaction is a milestone for FRORIEP’s banking & finance team which specialises in creating investment vehicles, predominantly in the field of real estate. The team was led by Catrina Luchsinger Gaehwiler (partner, banking & finance) and included, among others, Isabelle Romy (partner, environmental), Marcel Jung (partner, taxes), Mark Montanari (counsel, banking & finance), Benjamin Duerig (counsel, banking & finance) and Rinon Memeti (associate, banking & finance). The team was supported by Evelien Zemp (associate, civil law notary).