Real Estate

Julius Baer Builds New Swiss Real Estate Solutions

Tom Burroughes, Group Editor, 22 July 2021

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The private bank will provide the services with KMP, of which it will take a majority stake.

Julius Baer said yesterday that it is building a new unit to focus on real estate solutions in Switzerland. The unit will offer mortgage financing for the entire life cycle of real estate, including advisory, brokerage, financing and structuring, as well as related services such as investment management, valuation and specialised property management.

The Swiss private bank said it will provide these services together with KMP, of which it will acquire a majority stake of 83 per cent. 

Price details of the transaction with KMP were not disclosed. Julius Baer said the deal will not have a material impact on its capital ratios. 

“The new subsidiary will constitute an integral part of Julius Baer’s real estate offering, while acting as a strategic partner in the fields of real estate valuation, property management and commercial as well as residential real estate brokerage,” the bank said in a statement.

In residential brokerage, KMP’s footprint in the greater Zurich area will be expanded into the French-speaking part of Switzerland and coverage is also to be established in Ticino. Julius Baer will continue to collaborate with third-party real estate providers and ensure an open-architecture approach going forward, the bank said.

In the fourth quarter of this year, Dominik Weber, the majority owner and CEO of KMP, will build Julius Baer’s new real estate unit. He remains a minority owner and will act as chairman of KMP.

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