In recent years the real estate market in Switzerland has increasingly become the focus of investors. The legal certainty in Switzerland, as well as the stable currency, ensure that high-quality properties continue to gain in value and thus yield good returns.
Real Estate Investment Switzerland
Investing money profitably and securely at the moment is anything but a pleasure. Interest rates range from "negative" to "just over zero". Investments in stocks are very volatile and to treat with caution. In a panel discussion of the Zurich "Friends of Funds" platform, Swiss fund experts exchanged views on where and how to invest properly during these turbulent times.
It is agreed upon the interest rate forecast: In all probability the Fed rate this year will not raise four times, but only two or three times. The reason is that the labor market in the USA is starting to get hot again and the oil price is probably not going down any further. Rising incomes and possibly higher energy prices are likely to push inflation upwards. However, very low or negative interest rates are expected for Switzerland and Europe in the foreseeable future.
Ubi pecuniam - Buy Shares?
With that said, a participant of the panel, Christian Takushi from Geopolitical Economics AG, is particularly interested in state bonds. Takushi warned against the massive increase in risks and the threat of a regulatory wave, which would mainly affect banks. According to Takushi, stocks should, therefore, be traded very selectively and at short notice until at least 2018. A number of investors have already completely removed shares from their portfolios.
Investments in Swiss real estate
The debate about whether Swiss real estate is still a good and profitable choice was disagreeable. Arno Kneubühler from PROCIMMO SA affirmed this clearly. His advice to invest currently only in real estate with actively managed properties in top locations should definitely be good.
Real Estate Investments - A safe bank?
In comparison to other investment opportunities, real estate is unquestionably an attractive and secure investment. If condition, location, and value are good and the price is reasonable, real estate investments offer a stable and long-term capital security.
On the other hand: Precisely because top properties are also interesting for conservative investors, both prices and minimum investments have risen sharply in recent years. In particular, the often very high minimum investments in the past were a massive barrier for non-institutional investors.
Le Bijou - the "Real Estate Operating System" of the future
Le Bijou is the first company to digitize the hotel sector in the premium segment. Le Bijou combines proven and already successful elements of other revolutionary concepts like Airbnb with a whole new kind of travel comfort. The innovative apartment concepts and pioneering concierge software called "James" turn Le Bijou into an attractive hotel alternative. Le Bijou Bonds can be purchased with an entry-level investment of only CHF 10,000. This is why Le Bijou Bonds is suitable for solvent private and institutional investors.
The Le Bijou interior is modern, homely and elegant. Planned and realized with the proverbial Swiss passion for detail. Natural materials in combination with modern design and innovative technology create a feel-good atmosphere, which otherwise is only experienced in one´s own home.
Based on information from Neue Zürcher Zeitung
Le Bijou - the investment at a glance
Coupons: 7.125% p.a.
Payable every quarter on 31 March, 30 June, 30 September and 31 December, first payment on 30/06/2017 and final payment on 31/03/2022.
Subscription period: 22/03/2017
Received by post or physically delivered by 8 p.m. at the latest.
Payment: 31/03/2017
Payment deadline for bond investors.
Exit of an investor: 2x Pull option
First pull option after 12 months, second pull option after 36 months.
Maturity: 31/03/2022
Until 31/03/2022, 60 months as of 31/03/2017.
35% withholding tax: Taxable
Paid by Issuer.
Denomination: CHF 10,000
The minimum investment is CHF 10,000 nominal value or a multiple hereof.
Status: Pari passu
The Bonds and Coupons constitute unsecured and subordinate obligations of Issuer and are ranked equal amongst each other (pari passu).
Ranking: Subordinate
The Bonds and Coupons are subordinate to all current and future liabilities of the Issuer which are not subordinate or subordinated to the bond issue.
Securitisation: Bearer
The Bonds are issued as bearer securities.
Listing: Private
The Bonds are not listed for trading on a stock exchange.
Transfer Restriction: Tradable
Written consent by the Issuer is required. The Issuer may refuse consent for certain reasons.
Law / Jurisdiction: Swiss law
Swiss law applies, place of jurisdiction is Zug.
Sale Restrictions: Switzerland
Offer, sale, resale, delivery, allotment, acquisition and transfer only inside Switzerland.
Issuer / Registered Office: Zug
Le Bijou Hotel & Resort Management AG, Neugasse 21,6300 Zug, Switzerland
