The properties of the luxury department store Globus in Switzerland: How valuable are they really? Experts have doubts.

The properties of the luxury department store Globus in Switzerland: How valuable are they really? Experts have doubts.

According to a report from www.nzz.ch,

The real estate market is an important part of the Swiss economy and a crucial factor for investors, especially in times of economic uncertainty. In this context, the Globus branch building on Zurich's Bahnhofstrasse is of particular interest. The Austrian investor René Benko acquired this building as part of the purchase of the Globus department store chain. The valuation of this luxury property and its potential impact on the real estate market raises several questions.

According to the Luxembourg commercial register, the Globus building on Bahnhofstrasse is valued at 757 million francs, although there are doubts about this valuation. Real estate experts disagree about whether this valuation is realistic, as the value of the building has already been revised downwards twice. Despite the transformation of the building into a luxury temple, the challenge remains to make the upper floors attractive for office tenants and to avoid vacancies.

A comparison with other real estate companies such as Swiss Life, which have carried out a similar transformation, shows that it is possible to maximize returns through targeted conversion of the properties. The question remains whether the banks lending to the Globus building believe in Benko's luxury concept. If the planned concepts do not generate the expected rental income and financing costs increase, this can have a negative impact on the value of the building.

It remains to be seen whether the assessment of the Globus building is realistic and whether the planned concepts will deliver the desired results. If it turns out that the value of the Globus properties is exaggerated, René Benko would have another problem in the midst of his financial difficulties. The next few months will be interesting in this regard and offer important insights.