GENEVA - THE CROWDFUNDED SALE OF THE PROPERTY HAS BEEN SUCCESSFUL

The rental property in Bernex, which was offered to private individuals in tranches of 25,000 or 50,000 Swiss francs, has found a buyer. This is a first for the canton. The building is now owned by several private individuals, who hold shares in it.

This is a first for Geneva. The crowdfunding sale of a residential building was successfully completed on 20 December, Raiffeisen Bank in La Versoix announced on Friday. The scheme was launched by Foxstone in September. The aim was to offer private individuals the chance to buy shares in the building, located in Bernex, so that they could benefit from rental income – the idea being to enable small investors to put their money into property.

The building cost 5.1 million francs. It was marketed in tranches of 50,000 francs. Raiffeisen Bank in La Versoix contributed 3.1 million francs. During the process, tranches of 25,000 francs were also put up for sale. In total, around thirty investors, some of whom purchased multiple shares, are now co-owners of this building comprising eight flats. In September, Foxstone announced a yield of 4.5%.

A booming trend

Alex Rodriguez, a member of the management team at Raiffeisen Bank in La Versoix, notes that “more and more property crowdfunding platforms have emerged over the last twenty-four months”. He is convinced that this type of transaction, already carried out elsewhere in French-speaking Switzerland, will continue to emerge on the shores of Lake Geneva. “It is entirely conceivable that there will be several in 2020.” He believes that Geneva, with its shortage of vacant housing, offers good return opportunities for investors. “Rates there may be lower than elsewhere in Switzerland, but they are more secure.”

Source: 20 Minutes