Invest in a diversified portfolio
Lucerne Portfolio
Get access to a well-diversified portfolio of fully operational Le Bijou units managed and operated by our independent local franchisees. Benefit from a strong track record and operational model that has produced 10.14% in returns per year on average since its inception in 2019.
Lucerne portfolio
Deal summary
- Access operational locations in the heart of Lucerne
- Benefit from a strong track record and a well-diversified, growing portfolio
- Completely operational franchise with independent management
- Reliable financial forecast due to operations for over a decade, since 2019 for OCLU AG
10.14% p.a.
ROI per year
2.01x Equity Multiple (10 years)
Rolling fundraising
43% sold
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.
Return calculator*
A-Shares
10 years
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 above CHF 100'000 can access A-shares which offer a higher performance due to lower placement costs.
3Target return: Investments via a saving plan benefit from free leverage during the payoff terms of the purchased shares.
The le bijou way
Before we get into it,
let us explain how we work.
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 outperformed traditional real estate investments for over a decade by rigorously automating processes and using modern tech to eliminate complex operations.
Sleep
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.
Live
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.
Connect
Corporate and private events
Top-tier brands, corporations, and individuals book our units to host exclusive gatherings, events, brand presentations, meetings, and incentives.
Invest in a diversified portfolio of Le bijou projects
Lucerne is Switzerland's touristic hotspot
With an investment in the Lucerne portfolio, you benefit from one of Europe's most advanced, sought-after destinations. Lucerne has always been the touristic capital of Switzerland with its proximity to mountains, picturesque town, and luxury watch stores.
1
AAA+ Location
Our buildings are always located in exceptionally outstanding and central locations. The Lucerne portfolio includes top addresses such as St. Leodegardstrasse, with unique views of mountains and the city.
2
Fully operational
The Lucerne franchise acquires fully developed and operational Le Bijou units past their ramp-up phase. This enables shareholders to benefit from existing and ongoing cashflow, without development risk.
3
Independent
The Lucerne franchise is operated and managed independently by Le Bijou. This provides investors with default security should Le Bijou go bankrupt. The franchise agreement entails the Le Bijou operating system and marketing.
Key facts
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.
1
High occupancy rate
Lucerne has a well-diversified visitor base and one of the world's most sought-after luxury watch shopping streets. As Le Bijou targets short-term hotel guests, long-term high-margin residents, and event clients, Lucerne offers an ideal platform. It is both an attractive tourist destination and an internationally established brand.
Lucerne is an attraction for almost 10 million tourists every year from all over the world. With its well-preserved medieval core, elegant historic buildings, and genial atmosphere, the town is Switzerland's most popular tourist attraction. Lucerne offers a wealth of things to do. Lucerne is naturally gifted with Rigi, Pilatus, and Titlis mountain peaks, and the immensely famous Lake Lucerne, on which the quaint city is located, is great for a hike, winter sports activities like snowboarding and skiing or boating, and an excursion.
2
Excellent RevPar and high spending tourists
Together with the "Place Vendôme" in Paris and the "Shopping Mall Plaza 66" in Shanghai, the "Schwanenplatz" is one of the top three global marketplaces. Two hundred fifty buses bring around 50,000 tourists to the "Schwanenplatz" daily. Lucerne is particularly known for its high density of luxury watch shops and is well appreciated amongst the international watch community, which seeks high-quality accommodations like Le Bijou.
3
The Swiss capital of tourism
Lucerne’s international reputation attracts many tourists daily, who in particular also have a high purchasing power and willingness to pay.
Lucerne is an attraction for almost 10 million tourists every year from all over the world. With its well-preserved medieval core, elegant historic buildings, and genial atmosphere, the town is Switzerland's most popular tourist attraction. Lucerne offers a wealth of things to do. Lucerne is naturally gifted with Rigi, Pilatus, and Titlis mountain peaks, and the immensely famous Lake Lucerne, on which the quaint city is located, is great for a hike, winter sports activities like snowboarding and skiing or boating, and an excursion.
Switzerland heads the ranking of the most competitive economies in the world. The country managed to navigate the coronavirus crisis more effectively than others. The ranking, which has been compiled by the Lausanne-based IMD since 1989, was previously topped by Singapore.
4
Low interest rate or typical real estate risks
The Lucerne portfolio includes/or will include owned and leased properties. Therefore, investors are less exposed to the interest hikes of mortgages. We are leasing most buildings 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.
5
Completely automated approach
Like any Le Bijou apartment hotel, all units are 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.
6
Impressive track-record despite corona crisis
Since its inception in 2019, the Lucerne portfolio has performed at an average of 10.14% per year and stayed profitable in both years of the pandemic. The distributable income stayed around 7% yearly, not considering value appreciation.
7
Reliable market data from over a decade
Le Bijou started its operations back in 2011, while some data looks back even as far as 2009. The general misconception that serviced apartments, apart-hotels, or hotel offerings are volatile does not apply to Le Bijou. Our revenues have been stable and predictable during all market turmoil.
8
High demand for all our offerings
The demand for our offering has remained high even during the pandemic. Lucerne is one of the most sought-after touristic destinations in the world and offers one of the most stable economies, countless international corporations, world-class infrastructure, and many other competitive advantages.
9
Diversified income streams
In contrast to residential properties, Le Bijou projects have highly diversified revenue streams. We serve short-term hotel guests, long-term residents, and event clients.
10
Hands free investment
The Lucerne portfolio is formed as a fully operational stock corporation under the laws of Switzerland. Investors enter a Shareholders' Agreement and benefit from independent management. Within the franchise agreement with Le Bijou, the local franchisor licenses our marketing and operating system. Le Bijou charges 6-20% of the EBIDTA, whereas 6% is charged up to a hurdle rate of 8%.
Contemporary Chalet Chic Design
Le Bijou's signature interior design
Our units are 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.
Managed by bits and bytes
Meet James
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.
understanding the difference
Main reasons why Le Bijou beats traditional real estate
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 Lucerne Portfolio has performed at an average of 10.14% p.a. over the last three years, despite the sector's worst period ever.
Diversified revenue
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.
No rental caps
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.
Inflation ready
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.
The Financials
The figures to forecast the project's financial performance are reliable estimates from previous years but are not a guarantee for future earnings.
Since projections are not always accurate, we provide investors with a comprehensive, detailed financial plan. Use the tab "parameters" to change/play around with the projections. Our estimations reflect a conservative approach, and we have left complete buyouts, events, or multipurpose bookings out of the calculations.
| Key metrics: | |
| Return per year (A-Shares, based on ROIC on 4 year average including pandemic): | 10.14% p.a. |
| Return per year (B-Shares, based on ROIC on 4 year average including pandemic): | 3.38% p.a. |
| Equity Multiple A-Shares (MOIC) over 10 years: | 2.01x |
| LTV: | 52% |
| Assumed average occupancy: | 68% |
Target returns in % of original equity investment
The liquidity within the franchise company is usually brought forward. Investors realize their returns by selling a portion of the returns back to us at the updated valuation.
Hypothetical investment
CHF 100,000
Total return
CHF 201,000
Investment/Closing
-CHF 100,000
2019
CHF 16,210
2020
CHF 6,230
2021
CHF 7,980
2022 (assumption)
CHF 10,140
2023 (assumption)
CHF 10,140
2024 (assumption)
CHF 10,140
2025 (assumption)
CHF 10,140
2026 (assumption)
CHF 10,140
2027 (assumption)
CHF 10,140
2028 (assumption)
CHF 10,140
Equity financing
Cash flow
Value appreciation
The investment requires a minimum horizon of 5 years to be eligible for secondary transactions. To spread the financial return and ramp up phase evenly over the entire investment duration, we accredit the IRR yearly to the investment instrument.
Skin in the game
Capital sourcing
We participate in the deals with around 40%-50% 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 signed our investment agreement.
Targeted investors by size
100
Le Bijou (leverage)
49%
Private investors
30%
Institutional investors
21%
Track record
Convincing performance since 2019
The Lucerne franchise has produced a high cash flow since its inception in 2019, clearly outperforming the industry benchmark.
The corona crisis has affected distributable profits in the years 2020 and 2021. The results during the crisis would still compete with conventional real estate investments. The chart shows cash-on-cash results and doesn't compare value appreciation.
How to get involved
Investment structure
The franchise entity is formed as an independently managed stock company "AG" under Swiss law to minimize risk exposure and make future transactions easier.
Investment process - no signature is required!
Step 1
Click on "Start investing" at the end of the page
Step 2
Follow the guided onboarding process
Step 3
Hit "send" on the onboarding process to conclude your investment. No signature is required!
Step 4
You will receive an e-mail with the payment instructions
Step 5
Investments are due after the contract has been formed online
Step 6, welcome on board!
After we've received your payment, you will receive the assignment of shares via e-mail and post
Afterwards
You will receive frequent updates and investment reports
Questions you might have
-
How do you call the investors capital?
The subscribed investment is due after the onboarding process is completed. The onboarding process doesn't require a physical signature and can be done entirely online. Simply follow the link at the end of this page to initiate it.
-
Is it worth investing early into the project?
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.
-
What happens if Le Bijou goes bankrupt?
Should Le Bijou not be able to operate any longer, for example, due to bankruptcy, the franchise company will continue its operations. The franchise 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, management can rent out the property as well on a long-term basis as "regular" serviced apartments. The availability of traditional property managers is high.
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What is the minimum hold period?
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.
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Am I able to sell prior to the end of the hold period?
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.
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What reports will I receive?
We provide investors with an annual account statement of the investment club. AMC investors will further receive an individual performance report, including the NAV of their investment.
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What are the main risks to this 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 Lucerne, 2) conservative exit assumptions, and 3) high absorption rates in the local market.
Please reference the risk factors mentioned on our website.
| Investment parameters: | Above CHF 100'000 | Below CHF 100'000 |
| Instrument: | A-shares | B-shares |
| Minimum holding period: | 5 years (transactions outside our investors network are possible anytime in accordance with the shareholders' agreement) | 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 underlaying assets: | approx. 40 years | approx. 40 years |
| Placement fee: | 8.5% after holding period via Moonshot investor network | 8.5% after holding period via Moonshot investor network |
| Transferability: | According to shareholders' agreement | According to shareholders' agreement |
| Dividend payout/ repayment of capital contributions: | According to General Assembly of franchise company (OCLU AG) | According to General Assembly of franchise company (OCLU AG) |
| 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 |
What if you require unexpected liquidity?
POTENTIAL FOR LIQUIDITY
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.
However, liquidity is not provided or guaranteed; matching between seller and purchaser and the actual sale and purchase transaction are made between seller and purchaser directly without the involvement of Moonshot or the company investing in the respective company.
Performance
Financials are published every quarter, semester, or year. Buy new shares or find a buyer for yours within our community.
Liquidity
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.”
Insights
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.
Talk to us
Questions?
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.
Fabian Coray,
Director Investor Relations
Become an investor
Are you ready to invest?
Like everything at Le Bijou also, the investing process is seamless: Investment contracts can be formed online with a few simple clicks.
Create an account to discover more details and start investing.
