Investment properties make up the bulk of the portfolio. And the focus is on the management and development of properties used exclusively for residential purposes. The share of rental income from residential use is at least 50% of the total rental income. New build projects can account for up to 30% of the most recent property portfolio value (six-monthly evaluation), with the option of also building residential properties to be sold as condominiums.

Up to 15% of the most recent property portfolio value can be invested in special properties, such as shopping centres, cinemas, hotels and industrial facilities. Up to 20% can be invested into independent and permanent rights entered into the land registry or into developed building land allocated for an approved building project. And up to 15% of the most recent property portfolio value can be invested into properties allocated for approved repurposing or major renovation projects.

Investment properties by use

When acquiring properties, the target returns for investors should reflect the market and risks over the long term. The market and risks can be assessed by considering how attractive a location is, the quality of the property, the different usage options, sustainable development opportunities, the lease length and the tenants’ credit rating. Returns should also be optimised through repurposing, construction and property development projects.

The SBB training centre “Centre Loewenberg” was extensively refurbished and modernised in 2021. The aim was to take into account both sustainability and the protection of historical monuments. The interior of the buildings was not only modernized, but also digitalised. Thanks to these investments, the future energy consumption of the buildings will be reduced and, according to SBB estimates, an annual energy requirement of around 600,000 kWh will be saved. A newly installed photovoltaic system covers the entire cooling requirements of the Centre Loewenberg. Surplus energy is fed into the public energy grid.

During the conversion, 98% of the concrete and metal parts of the building structure and shells were reused.

Today, the restaurant operations as well as state-of-the-art seminar rooms and bedrooms are ready for internal or external guests and seminar participants.

Residential/commercial properties with 168 rooms and a total of
3 949 m2 living space and 12 956 m2 office space and training areas

Plot size
117 957 m²

Total usable area
18 495 m²

This development project in the Eastern part of St. Gallen involves three formerly detached buildings (see first image) that were demolished. The resulting gap between two other investment properties also owned by Novavest Real Estate AG (residential/commercial property at Rorschacherstrasse 123, 125, 127 and commercial property at Rorschacherstrasse 139/Helvetiastrasse 27) can be filled with a new five-storey building. Various commercial premises will be built on the ground floor and 69 studios and rooms on the upper floors.

Project realization is between 2021 and 2024.

Development project for a modern residential/commercial property

Plot size
1,640 m²

Total rentable space
The plans include up to around 2,150 m² to be rented in the future. According to the schedule, the apartments and commercial spaces should be ready for occupation by autumn 2024.