In 2015, the bank Lombard Odier & Cie (LODH) launched the implementation of a new real estate strategy, i.e. the project to relocate all activities of the bank under one roof.
After a pitch consultation, SPGI obtained a consultancy mandate in order to determine the “commercial attractiveness” of the different properties of the bank. The purpose was to anticipate the strengths and weaknesses of these properties and also to anticipate a future disposal strategy.
In this entire process, SPGI brought its deep knowledge of the Geneva real estate market and its network in order to get market information and opportunities.
In order to determine the “commercial attractiveness” of the portfolio, we implemented the following methodology: Detailed visits of the different properties. This phase was crucial in order to determine suitable scenarios per site. Proposition of different disposal scenarios to analyse. Review of the Geneva real estate market conditions particularly in terms of rent levels, yields, transformation/ refurbishments costs, demand/ supply and investor profile in order to calculate different achievable sales price. Analysis of the different scenarios per site considering key factors such as income, costs, timing and feasibility. Furthermore, we proceeded with a detailed check of the building surfaces in order to anticipate the various occupation alternatives and achievable rent rolls. Elaboration of a report presenting all analysed scenarios, results and the recommended strategy to implement with a focus on the requested next steps to follow.
After this analysis of the portfolio, LODH took the decision to go forward with its strategy and launched the search of suitable plots of land, able to accommodate a minimum surface of 30’000 sqm. SPGI has been mandated for this acquisition mandate and proceeded to the search and analysis of various relocation alternatives with the following tasks: collection of information, valuation, feasibility (building permit, timing, process), comparison of projects according to various factors such as price, access, timing, project efficiency, design etc. After a 12-month process, LODH acquired a plot of land in Bellevue, which will host all bank activities within next 4 years. Finally and after the acquisition of the Bellevue site, LODH mandated SPGI in order to sell the existing Lombard Odier portfolio consisting into 5 sites. The disposal strategy has been set up according to the initial portfolio analysis and the real market conditions at the time of the sales process. After a 5 month process, the entire portfolio has been sold to a Swiss institutional investor according a leaseback transaction.