Visionary approach sustains intangible value of industrial properties
Twenty years is not quite long-term for HIAG Immobilien, a publicly listed real-estate company and one of the largest in Switzerland. Drawing on a family heritage of almost 140 years in the timber and property markets, the company aims to transpose the industrial history of its assets into the future. This means redeveloping properties continuously to preserve their true value. Thus, the company effects a perpetually changing landscape without losing any heritage during the transition.
Twenty years is not quite long-term for HIAG Immobilien, a publicly listed real-estate company and one of the largest in Switzerland. Drawing on a family heritage of almost 140 years in the timber and property markets, the company aims to transpose the industrial history of its assets into the future. This means redeveloping properties continuously to preserve their true value. Thus, the company effects a perpetually changing landscape without losing any heritage during the transition.
"We guide the transformation process between one lifecycle of an area that might be 100 years, and guide it to the next 100 years," says Martin Durchschlag, CEO of HIAG Immobilien. "Each of these areas has a history, a given substance and anchor tenants. Every part has strengths and weaknesses, and out of these sets of features we try to bring back the highest value-added to the area. It's quite a long-term view that we take in selecting tenants and site development."
This visionary approach holds throughout HIAG Immobilien's 38 sites in Switzerland.
In the former textile industrial zones of Aathal, 20 minutes from Zurich, and Kunzareal in Windisch, the company pursues holistic urban redevelopment, creating a mix of retail, living and commercial spaces to breathe new life into the sites.
Kleindöttingen, which traces its roots to the timber industry, hosts three divisions of the ABB Group. HIAG Immobilien has created five industrial zones for ABB, and hosts the Europe, Middle East and Africa headquarters of Hewlett-Packard (HP) International.
Aside from ABB and HP, niche players such as athleticum Sportmarkets and Media Markt are among its top 10 tenants. The average historical stay of such tenants in HIAG Immobilien sites is 19 years. "There is a real long-term orientation by the tenants on our sites," Durchschlag says. "They put their industrial processes on these sites because they trust in our competence."
The company enters the property development cycle at a very early stage and works with the political stakeholders that are important in the process. It has vast experience and know-how in finding the best anchor tenants for an area and putting in place a long-term redevelopment plan that serves the community as a cohesive whole. Dialogue with public authorities and local residents is ingrained into this process to ensure a clear understanding of the community's vision before any detailed planning even takes place.
The Swissmetal site redevelopment in the greater Basel area demonstrates this. Through a subsidiary, HIAG Immobilien acquired the industrial site in October last year, shortly after the local community voted in favour of a municipal master plan which set the course for rezoning. The property transfer took place in January, giving momentum to the "Birsstadt" trans-regional area. The Chinese-owned company Baoshida Swissmetal is currently active on this site, with a potential long-term tenancy outlook.
"Staying as long-term owner builds trust that we really care about our business sites and future work areas," Durchschlag says.
With the Sino-Swiss free trade treaty coming into force last year, HIAG Immobilien sees huge potential in Switzerland for Chinese companies setting up European bases. Understanding the special needs of industrial tenants, it provides advisory services on taxation and other regulatory aspects affecting long-term business success.
HIAG Immobilien's broadly diversified portfolio answers to all property needs, from industrial and logistics to retail and residential. It has a land bank of large-scale, well-positioned locations spanning Bodensee to Geneva, including some in active regions such as Zurich, Basel and St Gallen. The project pipeline consists of 46 development projects with an investment value of 1.8 billion Swiss francs (HK$14.5 billion). "We have a long history and a very long-term approach," Durchschlag says. "We see ourselves as a strong partner for business development in Switzerland and Europe."
