ZURICH - Bloomberg
PSP Swiss Property AG, Switzerland's largest real estate company, said second-quarter profit dropped 23 percent on lower gains from the revaluation of properties.
Net income fell to 86.1 million Swiss francs ($78.4 million) from 111.9 million francs a year earlier, the Zurich-based company said in a statement on its Web site yesterday. Valuation gains declined 32 percent to 71.9 million francs, while rental income gained 4.5 percent to 63.9 million francs.
�Due to the still solid economic growth, the broadly based demand for commercial properties is likely to continue in the near future,'' the company said in the statement. �We are likely to see attractively priced acquisition opportunities outside the urban and economic centers in the coming years.''
The Swiss economy is expected to grow by about 2 percent this year, which is helping to ensure the value continues to rise for offices and shops in cities including Zurich as demand for space pushes up rents.
The environment for leasing shops and offices remained �positive� in the first half, the company said. �The avid interest in commercial areas was particularly pronounced in the urban economic centers.�
Demand for office space in Geneva and Zurich was strong as existing tenants expanded and more international companies arrived. Demand was highest among financial, consulting and biotechnology companies, PSP said.