Allswiss Introduces Mortgage-Backed Securities as a Competitive Alternative to Traditional Real Estate Bank Financing
Allswiss Introduces Mortgage-Backed Securities as a Competitive Alternative to
Traditional Real Estate Bank Financing
Zurich, October 16th, 2024 – In response to the consolidation of the Swiss banking industry, Allswiss is launching a new financial instrument: mortgage-backed securities.
This innovative solution aims to provide an alternative to the traditional bank-dominated mortgage market, which is becoming increasingly constrained due to heightened equity requirements, systemic risk concerns, and market concentration.
Allswiss, a well-established player in real estate brokerage known for handling properties valued at CHF 50 million and above, has traditionally supported clients in securing mortgage financing. However, the complexities of the Swiss market have required a shift in strategy.
Addressing market challenges
Cédric Anker, Co-CEO, explained the shift: “The Swiss market historically lacked this mortgage-backed bonds possibility due to the strong presence of banks and insurance companies, but the current reduction in market participants over the past years is now a game changer for us, creating a tailwind of opportunities for new financing solutions. With Allswiss’ founder, Pino Sergio, we have the conviction that a new market is now opening and that we want to be part of the first movers”.
With the support of Baker McKenzie, PwC and a prominent rating agency who privately rated this first ever mortgage obligation issued with a single property as underlying asset, Allswiss is targeting pension funds, real estate funds, asset managers and family offices; along with banks and insurance companies expected to bolster their equity reserves or downsize their balance sheet with the implementation of Basel IV and Solvency III regulations in 2025.
Launch of first operation at Zurich-Airport
Allswiss's inaugural project involves the issuance of bonds to finance the acquisition of an iconic mixed-use property with strong covenant tenants at Zurich Airport. The project features the issuance of three categories of bonds, each with a distinct interest rate and credit rating.
All three bond categories are green-certified:
• Senior “Green” Bonds: CHF 108 million at 2.45%
• Junior A “Green” Bonds: CHF 12.5 million at 5.2%
• Junior B “Green” Bonds: CHF 17.2 million at 6.75%
This first operation amounts to a total of CHF 170 million, including an equity component.
Cédric Anker expressed optimism about market interest in this alternative solution and noted that allswiss has several other transactions in the pipeline. “We see strong interest in this solution, and we are already working on additional projects,” Anker added.
About Allswiss
Leading real estate firm based in Switzerland, specializing in high-value property transactions and innovative financial solutions. Allswiss is investing in first-class core and core plus properties in the most important economic centers of Switzerland and Germany. The group was founded by Pino Sergio in 2007 and has an invested volume of more than CHF 4 billion and 350 transactions.