FASTEST-GROWING REAL ESTATE INVESTMENT PLATFORM IN SWITZERLAND
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What type of offers bring SwissLending?
Land banking, crowdlending & co-investing.
"Buy land, they're not making it anymore." Mark Twain
Like any major investment, diligent research is required to ensure that land banking remains profitable. Environmental considerations, financing, and market changes are all important factors that will dictate the profitability of the venture.
It’s important to consider the land location in purchasing a parcel for land banking. If there is a supply and demand issue in the area you are investing, land banking may be a more profitable venture than in an area with plenty of vacancies.
Real estate investment is rarely an exact science. In making the decision to invest in a land banking scenario, it’s wise to consider all the risks.
Though there are undoubtedly risks inherent in land banking, there are also significant benefits.
The day you invest in a Land Banking project, we already have a developer who takes the engagement to buy it back at a pre-defined price and invest time, knowledge, and cash in obtaining all the required administrative authorizations. We do so only in jurisdictions with stable and know legal frameworks. We focus on relatively short-term opportunities. We also have banking partners who may provide leverage of around 50% on those transactions.
It’s a crowdfunding method where investors co-finance projects by lending money (under the form of loans) to the borrowers (project owners) in return for interests.
Investing in crowdlending has several risks. These risks can be optimized by spreading risks on multiple investments. But still, these risks should be considered before investing:
The main risk - Borrower default – Happens when the borrower can pay any more interests or can’t give back the invested amount (look for corporate holding guarantee or other type of collateral (1st lien mortgages, etc…).
Not an issue in our case as all transactions are done directly with the issuer.
This crowdfunding investment method holds a lot of advantages such as investments possibilities, flexibility, and risks:
Depending on the size of the transaction and the regulation in effect for this type of investment (land banking, crowdlending or co-investing), the minimum amount may vary. It is generally starting at CHF 100’000.-
Whether we are developing land, structuring financing or leasing real estate – sustainability is embedded in each of our projects. We are growing rapidly and sustainably because our funds combine positive returns with social value.
According to the International Energy Agency (IEA), buildings account for 30% to 40% of total global final energy demand and over 30% of all energy-related CO2 emissions. Reduction of CO2 emissions and energy savings in buildings is therefore a key environmental issue for real estate companies. Real estate players are therefore expected to integrate environmental considerations into their investment and management decisions and should rely on international certifications that frame the environmental performance of buildings (including LEED and BREEAM). As existing buildings will last for decades to come, improving energy efficiency is a priority to fight climate change.
We have created a Framework to issue Green Bonds to finance or refinance, in full or in part, assets related to Green Buildings, and in that case, the Issuer coherently aligns with its sustainability strategy and commitments and addresses the main issues of the sector in terms of environmental responsibility.
We provide focused and specialist investment solutions to institutional investors, family offices and high net worth individuals in the form of club deals and joint ventures.
The debt ratio on transactions can reach up to 80% of the value of the building. We have different banking partners we are working with on those transactions. We usually use moderate leverage.
We apply an ESG benchmarking framework, from the start of the due diligence through the exit.