ROI per year
Before deciding on an investment, read the individual risk warnings carefully and consult a trusted financial expert. As for every investment, also real estate investments can include (complete) loss of the invested capital. Please note, that historical or projected performance information is not a reliable indicator for future earnings or losses.
1Target return: Please note that projected performance information is not a reliable indicator for future earnings or losses. The calculations are based on the historical results of similar projects. The calculated returns are based on the annual ROIC (return of invested capital).
2Investments below CHF 1M will be made accessible via an actively managed certificate (AMC) which in turn tracks the underlying investment. The performance is lower compared to A-shares due to fundraising and management costs.
3Target return: Investments above CHF 1M can directly join the project company including a board seat
Investing in real estate traditionally means buying a property to let it to commercial or residential tenants. While this may create a steady income, the so-called "buy to let" approach doesn't unleash the property's full earning potential.
We see real estate differently and turn buildings into autonomously operated cashflow powerhouses. To do so, we have developed an operating model that has been outperforming traditional real estate investments since over a decade by rigorously automating processes and using modern tech to eliminate complex operations.
Short term hotel bookings
Our apartments can be booked just like a hotel, night by night. As our offering is in the premium segment, guests are ready to pay a five-star rate to stay at our properties.
Long term residential tenants
Instead of finding, furnishing, and decorating your place, more and more high-earners decide to use "living as a service," which offers more flexibility and a fully managed lifestyle.
Corporate and private events
Top-tier brands, corporations, and individuals book our units to host exclusive gatherings, events, brand presentations, meetings, and incentives.
Our project at Bahnhofstrasse 89/Schützengasse 14a has one of the best locations imaginable, steps away from countless luxury boutiques, stores, restaurants, and top-tier corporations.
The entrance to the central train station, which connects directly to the airport and many destinations across Europe, is only 50 meters away.
The project is located at the top of Bahnhofstrasse, Zurich (Switzerland) in the last block before Zurich Main Station, shoulder to shoulder with the iconic hotel Schweizerhof and directly facing the iconic Hotel St. Gotthard.
An existing Le Bijou property with nearly 90% occupancy is right around the corner, delivering reliable market information and offering the perfect extension to the planned property.
The flexible architecture allows adjusting to whatever the market demands. From 49 junior-suite-sized units, large suite buyouts, and event bookings - we can offer it.
Just like a diamond, each Le Bijou project has its unique benefits and advantages which are listed below. Please note that the list is not exhaustive and focuses on the main characteristics of the opportunity.
We are completely reconstructing the entire inside of the property, which was previously used as an office. The architectural feasibility studies have already been performed and we are ready to hand in our building plans.
We plan 49 junior apartment suits which can be rented individually or jointly as a large apartment option. Pneumatic walls enable either separate the units with complete soundproofing or open floors up for events and large family booking.
The owner leases the building under a long-term lease agreement (20+20 years). After the negotiated lease period, the lease could be extended further. The project company will become the property's tenant (and not the owner of the building).
As the property is leased from the owner, investors are not exposed to the interest hikes of mortgages. We are leasing the building over a total period of 40 years and therefore do not carry the typical risks of traditional real estate. The functionality of the property (e.g. lift, structure, housing technology, etc.) is the responsibility of the landlord.
Like any Le Bijou apartment hotel, this unit will be fitted with our self-developed operating system including 24/7 concierge access, iPad minis with our client-facing "James App", as well as automated processes from check-in to check out.
Located at the top of Bahnhofstrasse, this property has an absolutely unbeatable location. Steps away from Zurich Main Station, high-end fashion boutiques, a broad selection of restaurants and top-tier corporations. Bahnhofstrasse Zurich is in the top 5 shopping streets in the world (rank 4).
This property is the perfect extension to our already existing property at Lintheschergasse 23, 8001 Zurich. We have based our financial estimations on four years of operation just around the corner.
The demand for our offering has remained high even during the pandemic. Zurich is one of the most sought-after cities in the world and offers one of the most stable economies, countless international corporations, top-tier universities and many other competitive advantages.
According to the Citi-commissioned EIU report, the ten most competitive cities in the world are New York (1st), London (2nd), Singapore (3rd), Paris and Hong Kong (joint 4th), Tokyo (6th), Zurich (7th), Washington, DC (8th), Chicago (9th), and Boston (10th).
The property at Bahnhofstrasse is a perfect extension to our existing locations in the city and helps to increase housekeeping efficiency and decrease operational costs due to the quantity effect. We focus on smaller units which are equivalent to a junior suite. Wheelchair-accessible, large units can be found around the corner at our property located on Lintheschergasse 23.
On the property's ground floor, guests can find a reputable restaurant. A well-visited bar on the ground floor of our property around the corner is only ten steps away. At least ten other restaurants can be found within a radius of 100 meters.
Zurich is a high-end destination for both: Hotel guests and long-term tenants. Based on our daily hotel rates, our existing units are frequently booked in the long term. We see an increasing demand for both markets.
Our 49 units will be equipped and built in our award-winning signature design. Each unit can be connected to a large apartment should bigger groups require it, or market demands change.
Meet James, the face of our virtual concierge service. Backed by augmented intelligence, James can facilitate whatever a guest wants, whenever they want. From 24/7 concierge services and transport to private dining, shopping, or spa services, simply ask, and James gets it done.
Present in every apartment, this concierge technology has the ability to learn from interactions, working away invisibly in the background to create a seamlessly personalized, completely organic experience for every Le Bijou stay.
The Le Bijou operating model is one of a kind and has shown resilience in extreme situations like the corona crisis or the war in Ukraine. The Zurich Portfolio has performed at an average of 12.5% p.a. over the last three years, despite the sector's worst period ever.
In contrast to traditional real estate investments such as multifamily homes or office buildings, a Le Bijou property doesn't rely on a single income stream. Our revenue streams are well-diversified across short-term touristic and business bookings, long-term residential rentals, exclusive corporate and private events, multipurpose income such as home-office, quarantine stays, brand representation, and more.
Residential properties are burdened by increasing regulations and restrictions on rental increases. In most countries, particularly in Europe (and Switzerland), tenants are better off than landlords. Rent nomads can sometimes stay in an apartment for years without paying rent. Rent increases are extremely difficult to enforce and are increasingly capped or lowered by legislation. We are not subject to the Residential Tenancy Act but only conclude temporary accommodation contracts.
Our clients are not price-sensitive, and dynamic price increases are generally accepted by our guests and residents. Generally, companies selling luxury or premium products struggle less during inflation or recession. Le Bijou can adjust prices dynamically daily. Our corporate clients are prepared to pay an additional margin for our excellent brand reputation and willingness to walk the extra mile.
|Return per year (A-Shares, based on ROIC):||22.22% p.a.|
|Return per year (AMC, based on ROIC):||15.54% p.a.|
|Equity Multiple A-Shares (MOIC):||3.22x|
|Equity Multiple AMC:||2.25x|
|Overall development budget:||CHF 10.4M|
|Assumed average occupancy (Zurich average 79.5%):||60.14%|
|Assumed revPAR:||CHF 140.60|
We participate in the deals with around 40% of our capital. The rest of the required capital will be raised from individual and institutional investors. Please note that we call the capital once you've decided to invest.
The project will be fully operated and owned by a separate legal entity, a so-called "project entity," which is formed as a stock company "AG" under Swiss law to minimize risk exposure and make future transactions easier.
|Investment parameters:||Below CHF 1'000'000||Above CHF 1'000'000|
|Instrument:||Actively Managed Certificate (issued by MISP AG, Zug)||Shares of a Swiss stock company (SPV)|
|Minimum holding period:||5 years (transactions outside our investors network are possible anytime)||5 years (transactions outside our investors network are possible anytime in accordance with the shareholders' agreement)|
|Investment horizon:||10 years||10 years|
|Holding period of the asset:||min. 40 years||min. 40 years|
|Placement fee:||8.5% after holding period via Moonshot investor network||8.5% after holding period via Moonshot investor network|
|Transferability:||No restrictions||According to shareholders' agreement|
|Dividend payout/ repayment of capital contributions:||According to General Assembly of project company||According to General Assembly of project company|
|Bankability:||On demand, additional fee min. 0.38% p.a.||On demand, additional fee min. 0.38% p.a.|
|Investor origin:||No restrictions||No restrictions|
Investors investing CHF 1 Mln and above will become direct shareholders of the project company, which in turn is developping and operating the property.
Investors investing below CHF 1 Mln will invest into an actively managed certificate (AMC) which is issued and managed by MISP AG, Zug, and invests its proceeds into the project company. The actively managed certificate (AMC) receives a slightly lower return due to higher fundraising, investment management, and communication costs.
If required, Investors can receive bankable security with a Swiss ISIN number. In this case, investors will carry additional fees, usually min. 0.38% p.a. of the invested capital.
Developed Le Bijou
The project company will develop and manage the property. This means investors have a completely effortless and managed experience.
Le Bijou charges a 2% asset management fee, a 2% property management fee based on gross revenue, and an annual performance fee of 6% of the EBITDA.
Should an investor require earlier liquidity, he can express interest in selling his securities to other investors. We have partnered with Moonshot to access over 7'000 active investors worldwide.
In such case, the investor’s interest in selling will be notified to other investors from the Moonshot Circle on a bulletin board on the Moonshot platform, either within the frame of purchase rights under a common shareholders agreement or otherwise according to the applicable terms.
Financials are published every quarter, semester, or year. Buy new shares or find a buyer for yours within our community.
We can quickly find a new buyer for your shares should you require unexpected liquidity. Moonshot acts as a "match-maker" via the in-house "Bulletin Board.”
Know what’s going on before everyone else does. We keep you posted as much as you like. We will keep you informed and provide you with useful information and analysis.
We usually call your capital through the project's construction process according to our financial planning and capital requirements. Typically, around 10-20% is needed during the planning phase, 50-60% of the capital is needed within nine months of construction, and the remaining 20% is after construction has been completed. The exact capital calls will be communicated from time to time.
100% of your capital will be called when you sign the contract with us. Based on the valuation of the project after ten years, we will assign the pro rata value increase every quarter. This means that you will be rewarded for investing early.
In the case of AMC investors (actively managed certificates), we will assign the pro rata value increase based on the valuation of the first ten-year period every quarter. This means that you are rewarded for investing early.
In the case of direct shareholding, we will not call the capital if the project cannot be started, e.a. if it's not sufficiently funded.
AMC investments will still be called, and the raised funds will be used for another deal-by-deal investment. The investors will also be compensated by an increased valuation of their certificates if the project changes.
Should Le Bijou not be able to operate any longer, for example, due to bankruptcy, the project company will assign a new asset manager for the property. The project company is legally not connected to Le Bijou and, therefore, will not be affected by a potential bankruptcy of Le Bijou or any of its projects.
As each Le Bijou property doesn't exclusively depend on a single source of income, the new manager can rent out the property as well on a long-term basis as "regular" serviced apartments. The availability of traditional property managers is high.
An investment in private real estate is an illiquid asset. We recommend planning with a 10-year hold period. However, our partner Moonshot offers a bulletin board that allows you to sell your holdings after our minimum hold period of 5 years.
Through the Moonshot Bulletin Board, you may have an option to offer your position for sale on the platform at a target sale price based on the net asset value (“NAV”) of the investment at that time, less external fees, and potential discounts for a replacement.
Investments are typically eligible to post on the Moonshot Bulletin Board six months after the initial investor closing (in case of firesale). However, liquidity and pricing are not guaranteed. Before investing, you should assume that you may be required to hold your investment for the duration of Moonshot's hold period.
See important disclosures below.
We provide investors with an annual account statement of the project company. AMC investors will further receive an individual performance report, including the NAV of their investment.
The primary risks include lease-up, exit price, and market supply dynamics. We believe these are mitigated by 1) strong demand from guests and tenants based on historical data from our properties in Zurich, 2) conservative exit assumptions, and 3) high absorption rates in the local market.
Please reference the term sheet and additional risk factors mentioned on our website.
We are happy to answer all your questions in a personal meeting or call. Le Bijou representatives are available for in-person meetings all over Switzerland and, upon availability, in Europe.
Schedule a call with one of our representatives to determine if Le Bijou is right for you.