Property sale has a positive impact on EBIT in 2021
Ad hoc, Monday, 20 December 2021
The Galenica Group has sold the property at its headquarters in Berne to a real estate fund of Credit Suisse Asset Management for around CHF 40 million. This results in an additional and one-off EBIT contribution of around CHF 9 million for the 2021 financial year.
This extraordinary contribution had not been included in the EBIT guidance of +10% to +14% (adjusted EBIT growth, excluding the effects of IFRS 16 and IAS 19) communicated in August 2021. Galenica therefore expects to exceed its EBIT guidance for the 2021 financial year. Galenica plans to publish an updated EBIT guidance together with the sales figures for the 2021 financial year on 20 January 2022.
Complete renovation of headquarters
Galenica has had its headquarters at Untermattweg 8 in Berne since 1967. The now 54-year-old building no longer meets today’s building and usage requirements and needs renovation. As real estate and management thereof are not a core area of expertise of Galenica, the company has decided to sell the property. Beginning in 2024, the new owner, a real estate fund of Credit Suisse Asset Management, will completely renovate the building and modernise it according to new building standards.
Long-term commitment to Berne as a business location
Galenica is committed to Berne and will retain its headquarters at the current location as a long-term tenant. The employees based at headquarters will be able to remain in the building throughout the entire construction phase and will temporarily move into office space in an annex. Once the renovation work is complete, the refurbished and modernised office space in the tower building is expected to be ready for occupation again in 2027.
Other press releases
Press release, Tuesday, 30 November 2021
Ad hoc announcement, Tuesday, 3 August 2021
Press release, Tuesday, 27 July 2021