We are pleased to inform you that in order to optimize our portfolio, we have sold a land property in Giubiasco. Due to its limited surface and a yield lower than our average target, this property was not functional for our development. The profit will be used to reduce our leverage ratio and to perform more strategic investments that we are currently evaluating.
The property was bought back in 2010 for CHF 800’000 and we realized the sale for CHF 1’850’000 after having received the construction license and sealed a general construction agreement for the edification of the projected building. The whole operation has been concluded with a profit of CHF 157’000 which means a ROE of about 10%.
We are also satisfied by the fact the new owner has expressed the intention to take on with the original Residentia’s plan of keeping the new building as rental property and not pursuing a more speculative sale strategy.