Swiss Prime Site Immobilien AG is one of the leading real estate companies with around 180 properties in prime locations throughout Switzerland. Karin Voigt, Chief Portfolio Officer at Swiss Prime Site Immobilien AG, explains in an interview what is important for portfolio management and what contribution facility management can make.
What are the biggest challenges facing institutional real estate investors today and in the future?
Meeting the diverse and increasingly complex demands of stakeholders and the market - whether in relation to ESG (Environmental, Social, and Governance) issues or the financial market. To do so, it is essential that the portfolio be resilient and of high quality. It also requires a team with diverse skills and comprehensive expertise.
Do you see a trend regarding what is important today for rental spaces to be highly attractive?
Location, location, location - as always. Flexibility in the space on offer in terms of size and fit-out standards. It’s becoming increasingly important for companies to be able to infuse their own DNA into the type of space they occupy. Furthermore, topics such as services, community, and sustainability are coming more and more to the forefront.
What strategy is SPSI pursuing?
Our real estate portfolio is valued at approximately CHF 13.1 billion. Including Swiss Prime Site Solutions, we manage approximately CHF 21 billion in real estate assets. This gives us significant economies of scale, allowing us to lead the market and set new standards in innovation and sustainability. As Switzerland’s leading real estate company, we create added value and shape sustainable living spaces - with innovation and passion.
How important is professional facility management to Swiss Prime Site’s success?
We have defined an owner-specific FM strategy and entered into a framework agreement in 2022 with ISS and three other FM providers. The strategy involves managing the portfolio through a small number of quality-assured FM providers with a high degree of in-house service delivery. Standardized FM contracts are used across the entire real estate portfolio. Our goal is to ensure high quality, which, among other things, positively impacts the satisfaction of tenants and building users. We view the FM provider as a key partner for the management and seamless operational management of our properties.
ISS has been selected to provide facility management services for Swiss Prime Site at the Turm Areal in Winterthur. What are the main reasons for choosing ISS as the FM provider?
For SPSI, the decisive factors are the quality of service delivery, the on-site organizational structure, and access to in-house specialists. The implementation of owner-specific requirements is also important. I’m thinking, for example, of standards and consistent service quality; a support organization with direct points of contact who handle tenants’ concerns on-site and can intervene quickly in the event of incidents; or compliance with the client’s defined requirements.
Managing mixed-use properties, such as the Turm Areal, is complex. What is essential for collaboration between the owner, the property manager, and the FM provider?
The primary focus is on ensuring smooth and optimized operations throughout the property’s entire lifecycle, with an increased emphasis on ESG considerations. Sites and properties naturally have their own unique characteristics, so we focus on what makes the most sense for the investor and user profiles. However, it is always absolutely essential that all parties involved work together as a team and collaboratively address tasks in accordance with the property strategy’s guidelines.
How important are ecology and sustainability at Swiss Prime Site?
For many years, sustainability has been a top priority at our company and is deeply embedded in our business model. Not only the properties themselves, but also their operation should be optimized to the greatest extent possible in this regard. Measures that can be implemented in the short term include switching to LED lighting, using chemical-free cleaning products, and implementing sustainable waste management. However, we are also exploring improvements in energy efficiency through eco-friendly heating and cooling systems, solar power, or district heating, as well as promoting a circular economy and biodiversity on our properties. With all measures, we ensure that both sustainability and economic viability are maintained.
When it comes to sustainability and innovation, what expectations does Swiss Prime Site have of the FM provider?
Basically, we want FM providers to demonstrate initiative and proactively support the owner in implementing measures. Accordingly, continuous review and optimization should be an integral part of the service agreement. As of now, a comprehensive package of sustainability requirements is being integrated into the framework agreement. In the future, we plan to explore whether sustainability-certified operations can even be offered or contracted as a standard service.